Please answer everything in photos. Last question is asking which would send a signal to firms to decrease production/keep production the same/increase production. Use the black line (plus symbol) to plot a 45-degree line on this graph. Then use all 6 of the the blue points (circle symbols) to plot the plannedexpenditure line for this economy. Be sure to plot these points at the income levels listed in the table (0, 100, 200, 300, 400, and 500 billion dollars).Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.(?)PLANNED EXPENDITURES (Billions of dollars)600500+40030020010000100+300200400INCOME (Billions of dollars)500600On the previous graph, use the black point (plus symbol) to indiNote: Dashed drop lines will automatically extend to both axes.Suppose income is currently $100 billion. This would mean thatwhich would send a signal to firms to➡+45-Degree LineOPE Line++Equilibrium Incomethe economy is in equilibrium.planned expenditure must also equal $100 billionfirms would have excess, unplanned, inventories of $225 billionfirms would have a $225 billion unplanned reduction in inventories+ The following table shows consumption (C), investment spending (I), and government purchases (G), for some hypothetical economy at severallevels of income (reported in billions of dollars of real GDP). Assume that in this economy, income is taxed at a rate of 25%, base consumption is $100billion, and that the marginal propensity to consume (MPC) is 0.333, or 1/3.Further assume that this economy is closed, that is, there is no international trade and so net exports are always equal to zero.Use the given information to fill in disposable income, consumption, and planned expenditures in the following table.Disposable (After Tax)Income: RealGDP(Billions ofdollars)0100200300400500Income(Billions of dollars)0(Billions ofdollars)100Ip(Billions ofdollars)505050505050G(Billions ofdollars)150150150150150150The following graph shows income (real GDP) on the horizontal axis and planned expenditure on the vertical axis.PlannedExpenditures(Billions of dollars)

Assume that, the income tax rate is 25%. Base consumption is $100 (i.e., the consumption at zero…

The following table shows consumption (C), investment spending (I), and government purchases (G), for some hypothetical economy at several levels of income (reported in billions of dollars of real GDP). Assume that in this economy, income is taxed at a rate of 25%, base consumption is $100 billion, and that the marginal propensity to consume (MPC) is 0.333, or 1/3. Further assume that this economy is closed, that is, there is no international trade and so net exports are always equal to zero.

The following table shows consumption (C), investment spending (I), and government purchases (G), for some hypothetical economy at several levels of income (reported in billions of dollars of real GDP). Assume that in this economy, income is taxed at a rate of 25%, base consumption is $100 billion, and that the marginal propensity to consume (MPC) is 0.333, or 1/3. Further assume that this economy is closed, that is, there is no international trade and so net exports are always equal to zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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