Suppose that disposable income consumption and saving in some countries are 200 billion, 150 billion and 50 billion respectively.  Next, assume that disposable income increases by 20 billion, consumption rises by 18 billion, in saving goes up by 2 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: If GDP is $3,400 billion, the multiplier is 5, and I rises by 15, what is the new level of GDP? The…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: 2. We have the following information on the economy: - Aggregate consumption is $1,000 when…

A: Given; Aggregate consumption when disposable income is zero= $1000 Aggregate disposable income when…

Q: 1. Given the following table. Income (RM million) Consumption (RM million) 100 100 150 200 200 300…

A: Autonomous consumption: - autonomous means independent, therefore, autonomous consumption is that…

Q: Essay Question 3 Refer to the information provided in Table 2 below to answer the questions that…

A: Planned expenditure is the worth of the total amount of finished products and services within an…

Q: Disposable Income $0 50 100 150 200 Consumer Spending $10 ch A) What is the MPC? 90 130 170 B) When…

A: The marginal propensity to consume (MPC) is a concept in economics that represents the proportion of…

Q: Given the consumption function C=$500bil + 0.8Y, an increase in disposable income from $6,000…

A: When the disposable income is $6,000 Billion, the consumption will be; Thus, C is equal to $5,300…

Q: If aggregate expenditures are equal to 15,000, and GDP is 20,000, then unplanned investment is…

A: At equilibrium, Aggregate expenditure is equal to GDP. That means planned expenditure equal to GDP.…

Q: Answer the next questions on the basis of the following information about a two-sector economy: Item…

A: In the above questions, we have used the formula : MPC = ∆C / ∆ Y  Multiplier = 1/ 1- MPC

Q: a. Suppose nominal GDP of a small economy in 2012 was $43 billion, the nominal GDP in 2018 was $96…

A: Given : Nominal GDP - 2012= $43 billion 2018=$96 billion Consumer Price Index : 2012=100 2018=180…

Q: A temporary increase in government expenditure will a. Shift the saving curve to the right b.…

A: Government expenditure (G): - government expenditure is the spending made by the government on the…

Q: 8. Given the following on a closed economy. C = 40 +0.8Yd 1= 55 - 200. G=20 T = 20 Y. = 400 C=…

A: Equilibrium is reached when production equals aggregate expenditure, that is when income is equal to…

Q: Autonomous consumption is:

A: Consumption expenditure is the purchase of goods and services for the use by the people in an…

Q: In order for the economy (GDP) to be grow and take advantage of the multiplier effect, which one of…

A: As a particular product is manufactured, cost is initiated and process of business is started.…

Q: Suppose the MPC in an economy is 0.95. The APC is initially 0.5 and disposable income is $7 billion.…

A: Initial disposable income  Yd0=$7 billionAPC=C0Yd0=0.5C0=0.5×7=$3.5billion

Q: 3. If the MPS is 0.1 and disposable income increases by $400, then consumption will increase by $…

A: The marginal propensity to save (MPS) is the fraction of additional income that an individual saves…

Q: GDP C S Ig $100 $100 $0 $80 200 160 40 80 300 220 80 80 400 280 120 80 500 340 160 80 600 400 200 80…

A: The marginal propensity to consume (MPC) refers to the portion of each additional income a consumer…

Q: Suppose that disposable Income, consumption, and saving in some country are $800 bllion, $700…

A: Marginal propensity to consume (MPC) refers to the value of additional consumption due to increase…

Q: Answer the following questions:   Instructions: Enter your answers rounded to the nearest whole…

A: MPC, marginal propensity to consume is the proportion of change in income that is spent on…

Q: Suppose the government increases expenditure towards education and training programs. The intended…

A: Answer: If the government increases spending towards education and training programs  then the…

Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 – 200r I= Investment G…

A: Given the closed economy, there would be no exports or imports.  C= 40+0.8Yd Here Yd is the…

Q: EOC 8.6 Homework Unanswered Due Jan 31st, 9:00 PM From the following data, determine the equilibrium…

A: Real GDP or real gross domestic product is one type of calculation which is actually adjusting the…

Q: Using the income-expenditure model, what is the expected effect (increase, decrease, or no effect)…

A: Income-expenditure method: It refers to the model under which the fluctuations and spending are…

Q: Assume an economy where spending for each sector is: Household: C = 800 +0.95Qd Business: I=3000…

A: Hello, thank you for the question. Since there are many subparts in the question, only the first…

Q: Quèstion 14 Refer to the Table for a private closed economy and match the correct answer. Domesti c…

A: Please find the attached answer of both the questions below-

Q: What can you say about the state of equilibrium in this economy? Will its real GDP rise, fall, or…

A: When the total expenditure meets the real GDP value, the economy is said to be in equilibrium. The…

Q: Based on the information presented below, what is the equation representing the consumption for this…

A: General form of the consumption function is given as: C = C0 + cY { C0 : autonomous consumption, c :…

Q: In a small economy the disposable income, consumption, and saving in some country are $200 billion,…

A: Marginal Propensity to Consume is the proportion of an increase in income that gets spent on…

Q: Given that national income is 80 crores and consumption expenditure 64 crores, find out the average…

A: National income is defined in economics as the value of goods and services generated in a country…

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A: 2. (a) To find the multiplier when the MPC is 0.75 and there are no imports or taxes, use the…

Q: Assume that the unintended investment is negative. Briefly outline how the level of Ye will change…

A: Unintended investment can be positive and negative. It entirely depends on the buying of firms…

Q: ECONOMICS .In an economy, total savings are $2000 crore and the ratio of Average Propensity to Save…

A: we can calculate the level of income by using APS and APC which are as follow-

Q: Would like all parts answered please; specifically parts (d,e,f)

A: a) The equilibrium level of consumption:    C= 40 + 0.8 * (400-20) C= 40 +256 C= 296   c) Y= C+ I +G…

Q: Can this be explained in a simple way? Thanks The following table illustrates a few rounds of the…

A: Marginal propensity to consume refers to the magnitude of change in the consumption expenditure when…

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.