Suppose in the economy of Richlandia the GDP in 2021 was $ 150 billion.  Also, assume that gross investments was $ 40 billion, personal consumption expenditure was $ 80 billion and net exports was -20 billion.    What was the value of government spending in Richlandia in 2021?   A. $ 0    B. $ 10 billion   C. $ 50 billion   D. $ 30 billion

Q: Suppose that every additional 3 percentage points in the investment rate boosts GDP growth by 1…

A: The economy with 3% additional investment experienced a GDP boost of 1%. All the investments are…

Q: How is U.S. total expenditure on goods and services in a year calculated?   U.S. total expenditure…

A: The expenditure method is the most widely used approach for calculating Gross Domestic Product,…

Q: Assume the government cuts spending by Si billion and the marginal propensity to save was 0.1. a.…

A: Gross domestic product (GDP) is the total monetary value, or market value, of finished products and…

Q: Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals…

A: Gross domestic product: Gross domestic product or GDP is an standard measure which includes the…

Q: 4. Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public…

A: Government spending or government expenditure can be divided into three primary groups, government…

Q: Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: Suppose that a federal election is called at a time when the economy is experiencing a recessionary…

A: The objective of the question is to understand the impact of two different economic policies - one…

Q: 1. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…

Q: 21) Assume that with existing tax and spending laws, government spending exceeds government tax…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: The table contains information about the nation of Syldavia. There are no income taxes or imports in…

A: Y = C+I+G In an closed economy the above formula can be used Y= National income or GDP C=…

Q: b. Assume the budget deficit in a closed economy is $2b, GDP is $100b and private savings is $10b,…

A: Investment is a part of GDP. GDP comprises Consumption, Investment, Government expenditure, and Net…

Q: On the basis of Table 5.3, the value of the income aggregate that is defined as "income received by…

A: The primary purpose of national income is to count the economic activity of the country as a means…

Q: A reduction in personal income taxes increases Aggregate Demand through   a. an increase in private…

A: Aggregate demand is the economic concept that helps in understanding the quantity demanded by all…

Q: In Zionville, GDP is $26,500. Consumption spending is $12,000, Investment spending is $5000, exports…

A: GDP is the sum of consumption(C) investment(I), government expenditure(G) and net export(NX)

Q: vIf this economy was an open economy with a government sector, the level of GDP would be The size of…

A: The measure that depicts the total value of the goods and services that are in turn being produced…

Q: 1. If imports are $2 trillion, exports are $1.9 trillion, consumption is $3.8 trillion, investment…

A: The objective of the first two questions is to calculate the Gross Domestic Product (GDP) using the…

Q: efer to Table 5.4. What will be the value of gross investment? a. $1,200 b. $1,800 c. $400 Od.…

A: Gross investment(I) is the total amount spent on acquiring new capital(K) assets within an economy.…

Q: Problems 3. Assume a simple closed economy, with an mpc equal budget amendment. The economy goes…

A: When the government spending exactly matches the tax revenue in an economy, then it is called a…

Q: Consider an economy in which GDP is $8.2 trillion, public saving is -$0.2 trillion, taxes are $0.9…

A: Economy means managing the available resources carefully.

Q: uppose  GDP = $9.0 trillion C= $5.0 trillion  G= $2.0 trillion  T-G  = $300 billion  With the…

A: GDP(gross domestic product) is referred to the value of all goods & services that are produced…

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: Use data below to answer the following questions: Consumption expenditures $300 billion, Government…

A: Answer: Given, Consumption expenditure=$300 billionGovernment purchases=$50 billionTaxes=$40…

Q: The Equivalence of Expenditure and Income (in Billions of Dollars) Expenditure C: Consumer goods and…

A: When comparing the economic performance of other nations, monitoring economic growth over time, and…

Q: 1. Spending - Included in the U.S. GDP for 2020, or not included ?      If so, under which…

A: Gross domestic product (GDP) is total market value of all finished goods and services produced…

Q: Suppose we have an economy where C = $30 Billion, I = $50 Billion, G = $20 Billion, Imports = $2…

A: a. The balance of trade or the trade balance is the difference between the value of exports and the…

Q: Gross domestic product (GDP) equals $5 trillion. If consumption equals $3.5 trillion, investment…

A: Given that, GDP = $5 trillion Consumption (C) = $3.5 trillion Investment (I) = $ 1 trillion…

Q: 38 Suppose that C = 800, I= 300, G = 200, and X = -100. a. Calculate GDP. b. Calculate each of the…

A: Part a ) Y = C + I + G + NX  Y = 800 + 300 + 200 - 100  Y = 1200

Q: 1. Explain why the Government Spending (G) component of GDP falls short of actual (total) government…

A: Gross domestic product(GDP) is the last worth of the labor and products delivered inside the…

Q: Using the table below, calculate the indicated values. Sector Consumption Investment Government…

A: Givena) Gross domestic product is calculated as ;= Consumption+ investment+ goverment spending+ net…

Q: he Congressional Budget Office admits that its forecasts of next year’s GDP are off by an average of…

A:

Q: You are told that taxes in this economy are equal to 100. What is the value of autonomous…

A: Autonomous consumption: Autonomous consumption is defined as consumption spending that occurs when…

Q: The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases…

A: a) Value of GDP: GDP = C+I+G+(X-M)GDP = $400+$150+$350+($150-$100)GDP = $950B Value of NDP: NDP =…

Q: Durable goods 400 Nonresidential investment Federal purchases of goods Exports 300 250 550 State and…

A: The proportion of personal consumption expenditures in GDP is vital, as it mirrors consumer…

Q: how much is GDP

A: GDP is the Gross Domestic Production. It means the value added by the production of goods and…

Q: Classify the type of expenditure in the following transactions.   Tuition paid by your parents is…

A: The tuition fees paid by the parents is like a expenditure on the services of a tutor that is being…

Q: Assume that total expenditure E comprises the sum of government consumption, G, household…

A: The objective of the question is to find the correct equation for household saving (SH) in a closed…

Q: Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure…

A: GDP- It is the market value of goods and services produced with in the domestic territory of the…

Q: Assume an open economy in which GDP is $20 trillion. If consumption is $14 trillion, government…

A: The objective of the question is to calculate the investment spending in an open economy. The GDP…

Q: In 2019, consumer spending was $16,000; investment spending was $4,000; and net exports were –$600.…

A: GDP = C+I+G+NX where C is consumption I is investment G is govt expenditure NX net export

Q: Suppose GDP is $16 trillion, with $10 trillion coming from consumption, $2 trillion coming from…

A: The Gross Domestic Product (GDP) is the value of goods and services produced within the domestic…

Q: Explain with your own words the definition of Gross Domestic Product. 2. How does the growth rate…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first question for you as per…

Q: 38)The following data are for a hypothetical economy in billion. What is GDP? Consumption…

A: GDP: GDP i.e. the gross domestic product is the value of all finished products produced in the…

Q: GDP in an economy is $8,000 billion. Consumer expenditures are $4,800 billion, government purchases…

A: Gross domestic product refers to the total amount of goods and services produced in an economh…

Q: Aggregate income in an economy in 2017 is ​$ 995 billion. Saving is ​$ 25 billion and imports…

A: The Keynesian Cross is an economic framework that portrays the link that exists between an economy's…