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Need help with 1 through 9 please.
Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only as per the guidelines.
aggregate expenditure or e say aggregate demand is the summation of consumption , Investment , government expenditure and net export.
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- Which of the following equations is correct for an economy that does not have a government or a foreign sector? Multiple Choice MPC × MPS = 1 MPC/MPS = 1 MPC - MPS = 1 MPC + MPS = 1Suppose that there’s a recessionary gap, and the country wishes to produce its potential output. Which of the following policy initiatives might help it reach this goal? A.the government increases taxes on consumers and corporations. B.the government initiates policies that encourage private investment spending. C.the government cuts spending programs. D.the government initiates policies that discourage private investment spending.The government of a country decides to double its current level of spending, causing real GDP to increase from $20,000 to $120, 000. What is the percent change in real GDP?
- Suppose that a federal election is called at a time when the economy is experiencing a recessionary gap and there is a budget deficit. The leader of Party A promises, if elected, to immediately balance the budget by slashing government spending. The leader of Party B promises, if elected, to stimulate the economy with a tax decrease. What would be the effect of each party's proposed policy on each of the following. a. the level of GDP. b. the level of NTR. The effect of Party A's proposed policy on: (Click to select) (Click to select) c. the level of unemployment. (Click to select) d. the budget deficit. (Click to select) e. the price level (Click to select) The effect of Party B's proposed policy on: (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Real GDP, Y (billions of 2012 dollars) Consumption expenditure, C (billions of 2012 dollars) Investment, I (billions of 2012 dollars) Government expenditure, G (billions of 2012 dollars) 15 6 5 5 20 10 5 5 25 14 5 5 30 18 5 5 35 22 5 5 The marginal propensity to consume in Syldavia is equal to A. 0.40. B. 5.00. C. 0.80. D. 0.75. E. 0.20.In a closed economy, GDP is $1000, government purchases are $200, consumption is $700 and the government has a budget surplus of $25. Using the given information calculate: a) investment, b) taxes, c) public saving.
- Expert economists in the economy of Bongo estimate the following: Billion Bongos 1,000 Real output/income Government purchases 300 Total net taxes 300 Investment spending (planned) 100 Assume that Bongoliers consume 80 percent of their disposable incomes and save 20 percent.A simple closed economy with government sector is given by the following equations: C = 10 + 0.75 Y I = 20 G = 40 where C is aggregate consumption, Y is national income, G is government expenditure on goods and services, and I is investment expenditure. Note that there are no taxes assumed in parts (a) to (c). (a) What is the equilibrium level of national income? Show all your workings. (b) What is the value of aggregate consumption and the value of aggregate savings at the equilibrium level of the national income? Show all your workings. (c) What would be the new level of national income if government expenditure increased by 10? Show all your workings and explain the mechanisms through which the economy reaches a new equilibrium. (d) If a tax rate of 1/3 of national income were introduced, what would be the new equilibrium level of national income in the economy outlined above. Show all your workings and explain the mechanisms through which the economy reaches the new equilibrium.In a closed economy, what determines consumption, investment, and government expenditures? Please include in your answer the form of the consumption function, investment function, and government expenditure function.
- Problem 1. The following equations characterize country's economy. Assume that the economy is a closed economy. Production function: Y = A·K'N – 3·N²/2. where A = 5 and K = 21. Labor supply: N$ = 5 + 3w. Desired Consumption: Cd = 56 +0.75Y – 100r Desired Investment: Iª = 130 – 900r Government Spending: G = 300 (a) Find the equilibrium levels of the real wage, employment and output (you may want to go back and read your notes on labor market). (b) Find the equilibrium level of the real interest rate, consumption, investment and national saving. (c) Illustrate your answers to parts (a)and (b) with appropriate graphs. (d) Suppose that due to a wave of immigration, labor supply increases. The new labor supply curve is given by Labor supply: N$ = 25 + 3w. Find the new equilibrium values of the real wage, employment, output, the real interest rate, investment, saving and consumption. Illustrate these new answers in the graphs that you drew for part (c).The economy of a country is characterized by the following equations: Aggregate consumption function C=100+0.50 (Yd), where Yd is the disposable income. Total taxes T=100, aggregate investment I= 100 and government expenditures G=100. What is the level of aggregate consumption at the equilibrium? 450 300 400 350 250Question 1 Given the following data on simple closed economy: C= 10 + 0.75 Y I= 20 G= 40 where C is aggregate consumption, Y is national income, G is government expenditure on goods and services, and I is investment expenditure. Note: There is no taxes assumed in parts (i) to (iii). ) What is the equilibrium level of national income? Show all your workings. (ii) What is the value of aggregate consumption and the value of aggregate savings at the equilibrium level of the national income? Show all your workings. ( (iii)What would be the new level of national income if government expenditure increased by 10? Show all your workings.