Still with the same data on Macroland, a closed economy with no government sector, and with fixed price level and interest rate. Fill-in the blank in the following table, then answer the following question. GDP Yd C Iplanned lunplanned 20 22 30 50 30 80 30 100 70 30 The Macroland's government reduced its taxes by 20, the income- expenditure equilibrium is expected to be: O 50 O80 100 O150
Q: G IM AE 200 200 200 s00 400 100 500 600 -100 200 500 400 150 Refer to the data above to answer this…
A: here we calculate the value of the Multiplier and choose the correct option so the calculation of…
Q: ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that…
A: Given, C= 60+0.8y
Q: Look again at the Solved Problem, in which we derived the saving and investment equation S =1+ NX In…
A: New saving investment relation would be derived from the IS relation : Y + TR - T = C + I + (G + TR…
Q: ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that…
A: a) Given, Consumption C=100 + 0.75Y Investment Ig= 60 Govt. expenditure G= 0…
Q: 8. The income-expenditure model Consider a small economy that is closed to trade, so its net exports…
A: Using the given information, the equilibrium level of income is:
Q: Refer to the information provided in Table 21.10 below to answer the question that follow. Table…
A: Nominal GDP is the GDP measured in the current year prices. Year 3: Q1=60 P1=$1.20 Q2=140 P2=$1…
Q: How will an increase in taxes applied to businesses affect the GDP based on the Expenditure…
A: As no specific wuestion is asked,only first wuestion would be answered. Increase in taxes would…
Q: PROVE MATHEMATICALLY the following: Given an increase in the proportional tax on income(t), what…
A: (Q) PROVE MATHEMATICALLY the following: Given an increase in the proportional tax on income(t), what…
Q: Refer to problem 2. What is the unplanned inventory change when GDP is equal to $2300? * O $40 -$40…
A: When the planned aggregate expenditure is equal to the real GDP will yield equilibrium in the…
Q: 1. Given the following macroeconomic data of a hypothetic economy: = 175 + 0.75(DI) = 50 = 35 = 30 1…
A: GDP=Y=C+I+G+ (X-M) D=Y-T Therefore, DIC+I+G+ (X-M) - T DI = 175 + 0.75(DI) + 50+ 35+ (30-45) - 35 DI…
Q: The components of aggregate expenditure are consumption expenditure O a. investment, government…
A: The aggregate expenditure refers to the total expenditure in an economy. When the economy is in…
Q: Still with the same data on Macroland, a closed economy with no government sector, and with fixed…
A: Consider the below points:GDP = YdUnplanned investment = Yd - C -Planned investment Yd=C+Iplanned
Q: Macroland, a closed economy with no government sector, and with fixed price level and interest rate.…
A: Consider the below points: GDP = Yd Unplanned investment = Yd - Consumption - Planned investment
Q: 17. Consider the following macroeconomic mode Time C= 200 + 0.8Y GI (Gross Investment)= 200 GP…
A: In an economy, the macroeconomic equilibrium is established at a level of real GDP where the…
Q: Y = C + 1 + G + (X – Z) C = Co + bY I = lo + aY G = Go Z = Z. X = Xo In the national income model…
A: The economies around the world work because of the aggregate spending which various entities in each…
Q: What are the two equivalent formulas for investment multiplier? O A. 1 and MPC 1- MPS OB. 1- MPC MPC…
A: We know that aggregate output in closed economy is given by Y = C+I+GWhere C =c+MPC×YSo Y=…
Q: Consider a closed economy with demand for goods as follows: Yd = C+I+G C= 200+0.80 ( Y-T) I= 600…
A: The expenditure which is determined by factors other than level of real income in an economy is…
Q: Refer to problem 2. The equilibrium level of real GDP is * O $2,500 O $2,400 O $2,300 O $2,200
A: The real GDP is said to be at equilibrium when the total amount of output produced in an economy is…
Q: Refer to Figure 3. The marginal propensity to consume equals * O 0.80 О 090 О 0.75 O 0.85
A: Marginal propensity to consume = Chnage in consumption / Change in income
Q: Consider the following Macro model: GDP Y=C+Gl+GP+NX C=120 +0.80Y, G.I-80 G.P=60 Tax 100 NX= -20 Yd…
A: GDP refers to the total value of finished goods and services that produced within the economic…
Q: QUESTION 4 If an increase of $5 billion in investment is associated with an increase of $50 billion…
A: Multiplier: It is defined as the number of times by which the income increases due to an increase in…
Q: Question 22 (Figure: Aggregate Expenditures Curve I) Use Figure: Aggregate Expenditures Curve I. The…
A: In Keynesian economics, changes in aggregate demand affect the output and employment levels in the…
Q: Consider the following Macro model: GDP=Y=C+GI+GP+NX C=120+0.80Y. G.I=80 G.P=60 Tax=100 NX= -20 Yd =…
A: Multiplier in economics is the factor by which the economic variables get multiplied due to a change…
Q: The table given below states the value of the Real GDP and the different components of aggregate…
A: Real GDP is the value of final goods and services produced in the economy within a given period of…
Q: QUESTION 1 Below is the data for an economy in the year 2016. Gross Domestic Product = $25,000…
A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.
Q: QUESTION 10 Assuming that the "equilibrium income" is $4,000 and the "full-employment" income is…
A: Government expenditure or expenditure includes all government consumption, investment and transfer…
Q: Which statement about this graph is NOT accurate? We are assuming a closed economy with government.…
A:
Q: According to the BEA, in the second quarter of 2012 state and local government spending on goods and…
A: The expenditure approach to deal with a GDP considers the amount of every final service and good…
Q: lumber mill in BC, Canada cut Canadian trees into ear, but ended in inventory only to be sold this…
A: Below points are to be considered: *Trees were cut in last year. *Sold for $322715 in the current…
Q: a)What will the multiplier be given the MPS values below? Fill in the table with your answers.…
A: Multiplier can be calculated by using the formula given below:
Q: Refer to the table shown. What is the value of GDP using the expenditure approach? $4,785 350 235…
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: A country has a GDP of $250 billion dollars. The consumption in that country is $30 billion. There…
A: Note: You have uploaded two questions simultaneously. Hence, we shall solve the first question for…
Q: If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an…
A: In economics, the current value of all finished commodities and services in the economy is aggregate…
Q: Assume an economy with a coal producer and a steel producer. In a giver ons of coal, selling for $5…
A: Given that The coal producer pays $50 million wages and steel producer pays $40 million wages,…
Q: Question 37 Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion. Also, assume…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The economy is initially in equilibrium at output Yo. where the aggregate expenditure (AE) line…
A: The higher the worth level, the lower the combination expenditures curve and therefore the lower the…
Q: Instructions: In the table, enter your answers for consumption as a whole number. Round your answers…
A: The average propensity to consume (APC) is the fraction of income that is spent rather than saved.…
Q: If taxes fall and government spending rises by the same amount, there is very little change in GDP.…
A: When the federal government spends more money than it receives in taxes in a given year, it runs a…
Q: Quèstion 8 In an open mixed economy, the inflationary expenditure gap may be described as the O A.…
A: Inflationary expenditure gap occurs when the actual equilibrium GDP (i.e., intersection point of AD…
Q: Suppose Ausland's spending for the year can be described by the table below: Construction of New…
A: Here we calculate the value of the Ausland Investment expenditure and choose the correct option , so…
Q: Suppose a simple economy has no government, so that the aggregate expenditure function is: AE = C…
A: AE = C + 1 + X - 1M c = 160 + by Consumption schedule passes through (0,160) and (40, 180) Slope…
Q: In the country of Arcadia, the minimum amount of consumption spending that will occur in a given…
A: Consumption is an important component of aggregate demand or GDP that is determined by the use of…
Q: Which one of the following pairs of points coincide(Li) : O The Break-even point and the national…
A: In economics, there are different ways to explain a specific situation because different theories…
Q: Figure 3 45° line 20 16 12 1.2 12 16 20 24 Disposable income (trillions of 2005 dollars) Refer to…
A: This Graph shows a consumption line that reflects a plot of the numbers in the consumption schedule…
Q: Suppose the current equilibrium GDP is less than potential GDP. Which of the following actions could…
A: Suppose the current equilibrium GDP is less than Potential GDP .
Q: The Data of Macroeconomics-End of Chapter Problem Place each of the following transactions in the…
A: Gross Domestic Product refers to the value of all final goods and services produced in an economy…
Q: In the aggregate expenditure (AE) model, the economy is driven to its equilibrium by changes in O a.…
A: The aggregate expenditure method helps to understand the relationship between the economic…
Q: Refer to the Table. The government spending multiplier in this economy is Planned Output Net (Income…
A: Government Spending Multiplier = 11-MPC or 1MPS where MPC is the marginal propensity to consume MPS…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- QUESTION 6 In the diagram below, what would happen if the government were to increase spending on goods and services? CWJ W O a. The line marked W would shift downwards and national income would move towards its equilibrium level O b. The line marked J would shift upwards and national income would move towards its equilibrium level O c. The line marked W would shift upwards and national income would move towards its equilibrium level O d. The line marked J would shift downwards and national income would move towards its equilibrium levelFigure 8-23. The figure represents the relationship between the size of a tax and the tax revenue raised by that tax. 6 on4m21 3 Tax Revenue B Tax Size Refer to Figure 8-23. If the economy is at point A on the curve, then a small increase in the tax rate will O increase the deadweight loss of the tax and increase tax revenue. O increase the deadweight loss of the tax and decrease tax revenue. decrease the deadweight loss of the tax and increase tax revenue. O decrease the deadweight loss of the tax and decrease tax revenue.What are the three injection into the income-expenditure flow? O Government Spending, Consumer Spending. Exports O Goverment Spending. Investment, Exports : O Government Spending, Investment, Imports
- Suppose the current equilibrium GDP is less than potential GDP. Which of the following actions could the government take to close the output gap? Select one or more: O a. No action is necessary O b. Decrease expenditures C. Decreases taxes Od. Increase taxes O e. Increase expendituresWhat could cause the following shift? O Increase in GDP. O Expansionary fiscal policy. O Decrease in future MPK. All of the above. FE IS LMChina's Economy Just Shrank for the First Time in Decades. It Could Still Eke Out Growth This Year China's real GDP decreased 6.8 percent in the first quarter of 2020. Investment decreased by 16 percent and consumer spending by 12.5 percent. Exports decreased 13 percent. Explain how gavemment expenditure minus imports changed in the first quarter of 2020. Government expenditure minus imports O A. decreased by more than 6.8 percent O B. must have increased OC. must have remained constant O D. decreased by less than 6.8 percent or increased
- Which of the following policies will NOT shift the Aggregate Expenditure curve upward? Select one: O a. increasing autonomous taxes O b. decreasing autonomous taxes O c. increasing autonomous transfer payments O d. increasing government expenditures on goods and servicesGDP $0 1 2 Consumption $0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 D 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is: 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investme O $1 trillion. $2 trillion. O $3 trillion. O $4 trillion. $6 trillion. 4 Aggregate Expenditures 6 Unplanned inventoryThe graph below shows real GDP levels over time. Answer the following questions based on this graph. Real GDP Business Cycle A Time a. At time T, what is the economy experiencing? O an economic expansion O full-employment output O an economic contraction b. In order to smooth out the business cycle, what type of fiscal policy should the government undertake? O expansionary fiscal policy O contractionary fiscal policy c. What type of actions might the government take? O a decrease in taxes and an increase in government purchases O an increase in taxes and a decrease in government purchases O a decrease in both taxes and government purchases. O an increase in both taxes and government purchases
- What is the formula for the marginal propensity to expend? A aggregate expenditures/A national income O b. A autonomous expenditures/A national income O a. O c. A consumption/A national income O d. A national income/A induced expendituresStill with the same data on Macroland, a closed economy with no government sector, and with fixed price level and interest rate. Fill-in the blank in the following table, then answer the following question. GDP Yd C Iplanned Гипplanned 20 22 30 50 30 80 30 100 70 30 The Macroland's government reduced its taxes by 20, the income-expenditure equilibrium is expected to be: O 50 80 100 150Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | = 800 G = 600 NX = 0 T= 700 Refer to problem 1. Equilibrium Real GDP is O 7200 O 4200 O 1800 O 5500