Refer to the information provided in Table below to answer the question. Aggregate Income ($ billion) Aggregate Consumption (Sbillion) 80 50 125 100 170 150 215 200 260 Refer to Table The equation for the aggregate consumption function is
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- Use the figure below to answer the following questions. Aggregate Expenditure (billions of 2012 dollars) 400 360 320 280 240 200 160 120 80 80 40 45° line AE 0 40 80 120 160 200 240 280 320 360 400 Real GDP (billions of 2012 dollars) The economy depicted does not engage in international trade and has no government. Planned aggregate expenditure (AE) is equal to the sum of consumption expenditure (C) and investment (I). Investment is $ billion. If investment increases by $75 billion, then real GDP increases by $ billion.An economy's consumption function is depicted in the table below. Consumption (C) ($ billions) 100 199 298 Disposable Income (Yd) ($ billions) 0 110 220 330 440 550 397 496 595 W The economy's MPC is equal to: Round your final answer to 2 decimal places, if necessary. Do not enter a comma "," or a dollar sign ($) while entering your answer.This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer) 1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020? Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/ Section 1: Domestic Product and Income; Table 1.1.5 1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments) 1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium. 1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy. Tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate…
- Item Measuring U.S. GDP: Using the information in the table below, calculate GDP via the expenditure approach. Expenditure Approach: Consumption expenditure Wages Investment Interest, Rent, Profits Government expenditure Exports Indirect Taxes less subsidies Depreciation Imports Dollars 15,400 8,500 2,100 4,100 3,200 3,000 1,100 2,000 8,000The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each of the following flows as part of either aggregate demand or national income. Consumption (C) Investment (1) Government purchases (G) Net exports (X-IM) Net taxes (NT) Disposable income (DI) While national income and domestic product must be equal, income must also equal expenditure for each of the six sectors in the circular flow diagram: firms, consumers, governments, financial system, investors, and the "rest of the world." For example, the amount of flowing into the financial system sector must equal the amount of flowing out of this sector. Saving (S) Net taxes (NT) Aggregate Demand Categorize each of the following flows as either injections into the circular flow or leakages from the circular flow. Exports (X) Investment (1) Government purchases (G) Imports (IM) National Income Injections Leakages O Save & ContinueWe have obtained the following information about Real GDP in the U.S. economy from 1973:01 through 1975:Q++Data has been provided by the Bureau of Economic Analysis (BEA): Real GDP (billions of chained 2012 $) $5,646.3 $5,707.8 $5,677.7 $5,731.6 $5,682.4 $5,695.9 $5,642.0 $5,620.1 $5,551.7 $5,591.4 $5,687.1 $5,763.7 Year 1973 1974 1975 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 A. Create a graph of the above Real GDP data and label the phases of the Business Cycle (Peak, Trough, Recession, Recovery/Expansion). B. In what quarter did the U.S. economy reach a business cycle peak? C. In what quarter did the U.S. economy reach the trough of the business cycle? D. What was the percent decline in Real GDP from the business cycle peak to the trough? RGDP trough - RGDP peak Hint: Economic Growth Rate = x 100 RGDP peak
- In the country of Marzipana, disposable income in Year 1 was $56,000 million and in Year 2 was $60,000 million: It has been observed that each time disposable income changes in this country by $100, consumption changes by $70. Using this information compute the change in consumption from Year 1 to Year 2. A)Consumption increased by $2,800 million in Year 2. B)Consumption decreased by $2,800 million in Year 2. C)Consumption increased by $5,714 million in Year 2. D)Consumption increased by $4,000 million in Year 2. E) Consumption decreased by $4,000 million in Year 2.The following table shows the U.S. gross domestic product (GDP) G, in trillions of dollars, as a function of the year t. t = Year 2004 2010 2014 G = GDP(trillions of dollars) 11.87 14.66 17.42 (a) Explain in practical terms what G(2010) means. The expression G(2010) is the year when the U.S. gross domestic product had a value of 11.87 trillion dollars.The expression G(2010) is the gross domestic product in trillions of dollars, multiplied by 2010. The expression G(2010) is the average of G(2004) and G(2010).The expression G(2010) is the U.S. gross domestic product in trillions of dollars in the year 2010. Find G(2010).$ trillion(b) Use functional notation to express the gross domestic product in 2012, and estimate that value. (Round the estimated value to two decimal places.) G = $ trillion(c) What is the average yearly rate of change in G from 2010 to 2014? (Round your answer to two decimal places.)$ trillion(d) Use your answer from part (c) to…Real-Time Data Analysis Exercise The following table contains data for nominal GDP, real GDP, and potential real GDP from FRED* for the fourth quarter of 2020. U.S. GDP Data Value (in billions) $21,487.9 21,496- Series 20,597- Nominal GDP 19,698 Real GDP Potential real GDP $18,783.9 $19414.2 18,799- 5 17,900- A variable identified as real is one that is measured in V dollars. 17,001- 16,102- base-year 15,203- current 14,304- 13.405- 12,506- Q4: 1404: 1624: 1804: 20 *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. GDP (billions of dollars)
- 5 GDP (Y) Consumption (C) Investment (I) $ 0 $ 60 $ 30 100 120 40 200 180 50 300 240. 60 400 500 300 360 70 BO (Advanced analysis) The table gives data for a private closed economy. The letters Y, C, S, and /are used to represent real GDP, consumption, saving, and Investment, respectively. The equation representing the Investment schedule for the economy is O Multiple Choice 1=0.3Y /= 80-03Y =30+0.1Y 10-30The table given below shows the values of different components of aggregate expenditure of an economy. At the equilibrium level of gross domestic product (GDP), saving equals Table 9.2 (Trillions of Dollars) Real Net Disposable Consumption Saving Planned Government Net Planned GDP Таxes Income (C) (S) Investment Purchases Exports Aggregate (Y) (NT) (Y – NT) (I) (G) (X – M) Expenditures C+I+G+(X-M) 5.0 1.0 4.0 3.9 0.1 1.0 1.0 -0.7 5.2 5.5 1.0 4.5 4.3 0.2 1.0 1.0 -0.7 5.6 6.0 1.0 5.0 4.7 0.3 1.0 1.0 -0.7 6.0 6.5 1.0 5.5 5.1 0.4 1.0 1.0 -0.7 6.4 7.0 1.0 6.0 5.5 0.5 1.0 1.0 -0.7 6.8 O a. $0.2 trillion O b. $0.1 trillion O c. $0.3 trillion O d. $0.4 trillion O e. $0.5 trillion