Use the following table to answer the next question.All figures in the table are in billions.C + I$525560RGDP$500550600650700750$600 billion.$700 billion.$650 billion.595630665700$550 billion.Exports$1515155555The equilibrium level of real GDP in this private openeconomy isMultiple Choice151515Imports$101010101010

This can be defined as a concept that shows the total amount of demand for the commodities and…

Answered: The equilibrium level of real GDP in…

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 term 'crowding out' refers to the decrease in a. consumption expenditure from an increase in investment b. the real interest rate from a government budget deficit c. foreign investment due to high public investment d. private investment from a government budget deficit e. saving from an increase in disposable income
Given the following table, which level of output is the equilibrium level?
In a closed private economy, an unplanned decrease in inventories will cause firms to increase real GDP. True False
C = 25 + .95 Yd I = 15 a. Calculate equilibrium disposable income for the one-sector model. b. Čalculate equilibrium disposable income for the two-sector model. c. Calculate the multiplier. d. Graph your results. Provide labels consistent with the webinar examples.
List and briefly discuss the advantages and disadvantages of the IRR rule.
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 = 1
The table sets out the data for an economy when the government's budget is balanced. The quantity of loanable funds demanded increases by $1.5 billion at each real interest rate and the quantity of loanable funds supplied increases by $0.5 billion at each interest rate If, at the same time the government budget becomes a deficit of $1.0 billion, what are the real interest rate and investment? Does any crowding out occur? >>> Answer to 1 decimal place The real interest rate is Investment is $ billion. There OA. is, HI percent a year crowding out in this situation because OB. is no the deficit increases the real interest rate, which decreases investment investment is $7.0 billion Real interest rate (percent per year) 4 5 6 7 8 9 10 Loanable funds Loanable funds demanded supplied (billions of 2007 dollars) 8.0 7.5 7.0 6.5 6.0 5.5 5.0 5.0 5.5 6.0 6.5 7.0 7.5 8.0
What is the likely effect of a substantial increase in government borrowing on the private investment in an economy? A. Private investment will increase due to more government spending. B. Private investment will decrease due to the crowding-out effect. C. Private investment will remain unchanged as government borrowing does not affect private sectors. D. Private investment will first decrease, then increase as government spending stimulates the economy.
A number of economists contend that official measures of Canadian gross private investment expenditures are understated. For instance, household spending on education, such as college tuition expenditures, is counted as consumption. Some economists suggest that these expenditures, which amount to 6 percent of GDP, should be counted as investment instead. investment if this suggestion was adopted? Based on this 6 percent estimate and the estimated 2020 Q2 GDP being $1,820,369 million, how many millions of dollars would shift from consumption. Smillion would shift from consumption to investment if this suggestion was adopted. (Enter your response rounded to the nearest whole number.)
QUESTION NO. 3 Complete the following table and estimate the equilibrium levels of output and employment in this private closed economy, assuming that the level of investment is $16 billion and is independent of the level of total output. Employment (Millions) 40 45 50 55 60 65 70 75 80 GDP DI (Billions) 240 260 280 300 320 340 360 380 400 Consumption (Billions) 244 260 276 292 308 324 340 356 372 Saving (Billions) Investment (Billions) Aggregate Expenditures (Billions)
Please complete all parts of DFS technical question 4, Chapter 2, reproduced here. Assume GDP is $6,000, personal disposable income is $5,100 and the government budget deficit is $200. Consumption is $3,800, and the trade deficit is $100. a)How large is savings? b)How large is investment? c)How large is government spending?
When unwanted inventories pile up in retail stores, how is production affected? What are the steps in this process?

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The equilibrium level of real GDP in this private open economy is Multiple Choice $600 billion. $700 billion. $650 billion.