Suppose a given hypothetical economy has the following values. GDP-520 Billion, Consumption =$13 Billion; Govermment Purchase-$4 Billion; and Budget Surplus= $1 BillionHow much is the public saving?OA S5 BilionOB $4 BlionOC.52 BillionOD-$1 BillionOE S1 BillionOF $3 Billion

Here, the value of consumption, government purchases, GDP and budget surplus is given for a…

Answered: Suppose a given hypothetical economy…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The partial data in the table below are for the economy of Arinaka. Planned investment, government spending, and all taxes are autonomous. You may assume that the MPC, MPS, and MPM are constant. a. Fill in the blanks in table below, YD AE Unplanned I Y. $300 C $200 $60 $50 60 $60 $20 -10 $50 350 400 450 b. The value of equilibrium income is $ c. If planned investment decreases by $20, the new value of equilibrium income is $
Assuming no govemment or foreign sector, if the MPC is 0.5, the multiplier is Select one: a. 5. stion O b. 2. c. 0.5. 0.5. d. 0.2.
Please see attachment Answer neatly Show all your work. Based on the above diagram: 1. Calculate MPC? 2. If Private Investment increases by 100, calculate the new level of NI. 3. If full-employment NI is at 3000, by how much should Government spending change? 4. What is the new NI, If 1/2 of those government expenditures are financed through taxes?
PLZ PROVIDE SOLUTION ASAP
If consumption is C=100+0.75Yd Taxes is T=50+0.5Y Export is X=200 Import is M=50+0.25Y Government spending is G=150 Investment is I=200 Usethemultiplierapplicabletoexport,toexplainhowa100–billiondeclineindemand forexportcouldaffecttheeconomy’s: (i) Balanceofpayment
23. Guppse that fra,u)= T4. Find the maximum Value for fif x and y are constrained o sum to 1. Solve thiis problems in two ways : by substitutiou and by using the Logrange Multiplier method. X+y=1. F.y) =ry, 4=1-x. to -> %3D tx =-2x+1.maximum value → frx=o. X=E タニリニー 1-X-4 = 0 エ=f(Y,4)+A (1-g%-4) = x4ナA(1-%-4 ) = y-A, = x-1, of of 1-ベ-4 → 1-2y=0. X=立, %3D =0= y=X =07 X= À %3D #2-4. The dual problem to the one described in problem 2.3 is minimiz2e xty subject to xy =0.25 Solve thi problem using the Lagrangian technique. Then Compare the value You get tor the Logrange Multiplier wrth the value you got in Prolem 2-3. Explain the relatibuship between the two solutibns
Economics Assume in a simple economy that the level of saving is -$800 when aggregate output equals zero and that the marginal propensity to save is 0.25. 4.400 Derive the saving function and the oonsumption function. 3800 45 ne 3.200 OA S-800 +0.25Y and C-800 •0.75Y OB S- B00 -0.26Y and C B00 +0.75Y OC. B-800 -0.25Y and C-800 -0.75Y OD. S-800-0.025Y and C800 -0.075Y U 2.000 1400 Draw a graph showing these functions. 00 1.) Using the ine drawing toot, draw the consumption tunction. Label your line C. 200 2.) Using the ine drawing tool, draw the saving function. Label your ine S. ebo o 1do0 2400 000 do 400- Note: Carefully folow the instructions above and only draw the required abjects. Aggregate income. Y The consumption curve crosses the 45-degree line at a level of output of S (Enter your response as an integer)
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4. Benjamin's income increases from $40,000 to $44,000. His consumption increases from $35,000 to $36,000. What is Benjamin's Marginal Propensity to Save? A..19 B..75 C. .81 D. 1.25
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An increase in the MPC from 75% to 80% implies all of the following except which of the following?

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Suppose a given hypothetical economy has the following values GDP-520 BIlion, Consumption =$13 Billion, Govermment Purchase-$4 Billion; and Budget Surplus $1 Billion How much is the public saving? OA S5 Bilion OB S4 Blon OC2 Bilion OD $1 Bon OE S1 Bon