The table given below reports the value of real GDP and its components consumption (C), investment (I), exports,and imports for two consecutive years in an economy.Table 10.3Equilibrium RealExportsImportsGDPYear 1$9,350$7,500$1,350$1,800Year 2$11,450$8,900$2,350$1,600Assume that government spending is zero for this economy.Refer to Table 10.3. Assume that the economy is at equilibrium in both years, and that government spending is zerofor this economy. The change in investment spending from year 1 to year 2 is:$1,800.$450.O $945.$214.$2,100.

At equilibrium Y = C+I + G +X -M where C is consumption I is investment G is government spending X…

Answered: The table given below reports the value…

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 table given below states the value of the Real GDP and the different components of aggregate expenditure for two years. Table 10.1 Real GDP C I Export Import Year 1 $750 $110 $60 $70 $50 Year 2 $1,150 $930 $90 $75 $125 in which: C is consumption; I is Investment; G is government purchases of goods and services. Refer to Table 10.1. Assume that the economy is at equilibrium in Year 1. What is the equilibrium level of real GDP in year 1? O $940 O $1,040 O $1,100 $1,050 $920
questions:1. what is the current level of real GDP?2. what is the current overall price level?3. what is the current level of real GDP per capita?
Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Planned Investment (1) Real GDP (Y) $14,000 $15,000 $16,000 $17,000 $18,000 The equilibrium level of GDP is $ The MPC is billion. Consumption (C) $11,000 $11,750 $12,500 $13,250 $14,000 $1,500 $1,500 $1,500 $1,500 $1,500 (enter your response to two decimal places). Suppose that net exports increase by $400 billion. Using the multiplier formula, determine the new level of GDP. A $400 billion increase in net exports leads to a change in spending of $ billion, so the new level of GDP will be $ billion. Government Purchases (G) $2,500 $2,500 $2,500 $2,500 $2,500 Net Exports (NX) - $500 - $500 - $500 - $500 - $500
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Fill in the table below to answer the next five questions. Assume that l", G and NX are fixed. Consumption Planned Government Net Exports Aggregate Change in Real GDP (Y) (C) Investment (Ip) Expenditures (G) (NX) Expenditures (AE) Inventories 10000 11000 550 12000 1000 13000 10520 14000 11320 15000 12120 730 The full-employment level of output is $1000 above the current level of output. How much should the government change taxes in order for the new equilibrium to be equal to the full-employment level of output? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. -1000 b -250 C 250 1000
Suppose that the economy is depicted by the following relationship: where: C=$100 +0.75 (Y-T) G= $ 600 T = $ 600 1= $200 X = $ 50 Expenditures =C+I+G+X The economy is in equilibrium at a level of real GDP or income of $ Now suppose that the government decides to increase government spending by $50. What is the new equilibrium level of GDP or income? $(Round your answer to the nearest dollar) (Round your answer to the nearest dollar)
21. Given the following macroeconomic data of a hypothetic economy: C = 175 + 0.75(DI) | = 50 G = 35 X = 30 %3D M = 45 T = 35 Compute the equilibrium GDP of this hypothetic economy. none of the answers given is correct $850 $925 $900 $950
The following graph shows the total expenditure line (TE) for an economy where current equilibrium output is $400 billion and potential output is $275 billion. The economy is experiencing _________ (a contractionary gap, an inflationary gap) equal to $______ billion. To close the output gap, government purchases could _______ (increase, decreease) by _____ ($50, 150, 75) billion. Thus, the value of the multiplier for this economy is ___________ (1.6667, 1.4545, 0.6, 0.3125, 0.4545). On the previous graph, shift the TE line to show the change in total expenditure necessary to close the output gap.
Consider the following table showing national income in billions of dollars. Assume that the marginal propensity to import is 20% and the level of exports is $60 billion. Calculate the level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Actual National Income (Y) (Billions of $) 200 400 600 800 1000 Net Exports (X-IM) (Billions of $) Now assume that the marginal propensity to import increases to 25%. Calculate the new level of net exports for each level of actual income and fill in the table below. (Round your responses to the nearest whole number.) Actual National Income (Y) (Billions of $) 200 Net Exports (X-IM) (Billions of $) 400 600 800 1000 When we compare these two tables, we can see that for a given level of exports, the higher the marginal propensity to import, the the level of net exports will be at each level of income.
The aggregate demand function: yad =C+1+G₁ = 500+ 0.75Y is plotted on the graph to the right. The graph also shows the 45° line where aggregate output Y equals aggregate demand yad for all points. What happens to aggregate output if government spending rises by 100? The equilibrium level of output rises by $ billion. (Round your response to the nearest billion.) Consumption Expenditure, C ($ billions) 3000- 2800- 2600- 2400- 2200- 2000- 1800- 1600- 1400- 1200- 1000- 800- 600- 400- 200- 0- 0 yad =C+I+G₁ = 500 +0.75Y Y = yad 45° 400 800 1200 1600 2000 2400 2800 Disposable Income ($ billions)
Question 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.

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