Suppose an economy with the following characteristics. Y = Real GDP or national income T= Taxes = 0.3Y %3D C= Consumption = 140 + 0.9(Y – T) I= Investment = 400 G= Government spending = 800 X = Exports = 600 M= Imports = 0.15Y Given the information above, a. What is the saving function in this economy? b. What is this economy's spending multiplier? c. What is the equation for Aggregate Expenditures (AE) in this economy? %3D

Suppose an economy with the following characteristics. Y = Real GDP or national income T= Taxes = 0.3Y %3D C= Consumption = 140 + 0.9(Y – T) I= Investment = 400 G= Government spending = 800 X = Exports = 600 M= Imports = 0.15Y Given the information above, a. What is the saving function in this economy? b. What is this economy's spending multiplier? c. What is the equation for Aggregate Expenditures (AE) in this economy? %3D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer only the (d) and (e) questions Thankyou
The table shows disposable income and saving in an economy. Calculate consumption expenditure at each level of disposable income. Over what range of disposable income is there dissaving? Estimate the level of disposable income at which saving is zero. >>> Answer to 1 decimal place. Disposable income 0 (trillions of dollars) Saving 10 20 30 40 53--35 50 5 When disposable income is $30 trillion, consumption expenditure is $ trillion.
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The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers (gray-shaded cells) in the table. Instructions: In the table, enter your answers for consumption as a whole number. Round your answers for APC and APS to 3 decimal places. Round your answers for MPC and MPS to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Level of Output and Income (GDP = DI) Consumption Saving АРС APS MPC MPS 496 -0.033 -0.015 $480 $-16 1.033 520 528 -8 1.015 560 560 1.000 0.000 592 624 600 0.987 0.013 640 16 0.975 0.025 680 656 24 0.965 0.035 720 688 32 0.956 0.044 760 720 40 0.947 0.053 800 752 48 0.940 0.060
Aggregate Expenditures and Multipliers Assignment a. Using the aggregate expenditure function above, what is the current level of real GDP? b. Using the aggregate expenditure function above, what would be the level of real GDP if the aggregate expenditure function shifted up by $0.2T? c. If Investment expenditures increase by $300B and MPC is equal to 0.90, what will be the increase in real GDP? d. If Government expenditures increase by $800B and MPS is equal to 0.05, what will be the increase in real GDP?
From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income.
What will the multiplier be when the MPS is 0, 0.4, 0.6, and 1? What will it be when MPC is 1, 0.90, 0.67, 0.50, and 0? How much of a change in GDP will result if firms increase their level of investment by 8 billion and the MPC is 0.80? If the MPC instead of 0.67?
An economy is described by the following equations: Y = C + I, + G C = a + b(Y – T) T = tY %3D %3D Let a = 20,6 = 0.75, t = 0.25, I, = 100, G = 240 %3D (a) Determine the value of the multiplier for this economy, and find the equilibrium value of Y. (b) Find the values of C, T and G-T, given your answer to part (a). (c) Describe what would happen if the government tried to eliminate its budget deficit by undertaking a cut in G equal to the current value of G-T. HTML Editor B IUA A ▼ 回深 D ¶ T 12pt Paragrap II
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am. 201.
15. Total expenditures in a country (in billions of dollars) are increasing at a rate of f(x) = 8.22x+87.13, where x = 0 corresponds to the year 2000. Total expenditures were $1584.9 billion in 2002. a. Find a function that gives the total expenditures x years after 2000. b. What will total expenditures be in 2016? a. What is the function for the total expenditures? F(x)= (Simplify your answer. Use integers or decimals for any numbers in the expression.) b. In 2016, total expenditures will be S (Type an integer or a decimal.) billion.
How would I do D?