### Components of Aggregate Expenditure of an EconomyThe table given below shows the values of different components of aggregate expenditure of an economy. The marginal propensity to consume (MPC) equals:#### Table 9.2 (Trillions of Dollars)| Real GDP (Y) | Net Taxes (NT) | Disposable Income (Y - NT) | Consumption (C) | Saving (S) | Planned Investment (I) | Government Purchases (G) | Net Exports (X - M) | Planned Aggregate Expenditures (C + I + G + (X - M)) ||--------------|----------------|----------------------------|-----------------|------------|-------------------------|-------------------------|----------------------|-------------------------------------------------------|| 5.0 | 1.0 | 4.0 | 3.9 | 0.1 | 1.0 | 1.0 | -0.7 | 5.2 || 5.5 | 1.0 | 4.5 | 4.3 | 0.2 | 1.0 | 1.0 | -0.7 | 5.6 || 6.0 | 1.0 | 5.0 | 4.7 | 0.3 | 1.0 | 1.0 | -0.7 | 6.0 || 6.5 | 1.0 | 5.5 | 5.1 | 0.4 | 1.0 | 1.0 | -0.7 | 6.4 || 7.0 | 1.0 | 6.0 | 5.5 | 0.5 | 1.0 | 1.0 | -0.7 | 6.8 |![Navigation Menu]- b. 0.90 or 9/10.- c. 0.60 or 3/5.- d. 0.20 or 1/5.- e. 0.80 or 4/5.### Explanation of the TableThe table lists various components of aggregate expenditure measured in trillions of dollars. It includes

The proportion of a rise in income that is spent on spending is known as MPC. It is the most crucial…

The table given below shows the values of different components of aggregate expenditure of an economy. The marginal propensity to consume (MPC) equals: Table 9.2 (Trillions of Dollars) Real Net Disposable Consumption Saving Planned Government Net Planned GDP Тахes Income (C) (S) Investment Purchases Exports Aggregate (Y) (NT) (Y – NT) (I) (G) (X-М) Expenditures C+I+G+(X-M) 5.0 1.0 4.0 3.9 0.1 1.0 1.0 -0.7 5.2 5.5 1.0 4.5 4.3 0.2 1.0 1.0 -0.7 5.6 6.0 1.0 5.0 4.7 0.3 1.0 1.0 -0.7 6.0 6.5 1.0 5.5 5.1 0.4 1.0 1.0 -0.7 6.4 7.0 1.0 6.0 5.5 0.5 1.0 1.0 -0.7 6.8 Navigation Menu O b.0.90 or 9/10. O c. 0.60 or 3/5. O d. 0.20 or 1/5. O e.0.80 or 4/5.

The table given below shows the values of different components of aggregate expenditure of an economy. The marginal propensity to consume (MPC) equals: Table 9.2 (Trillions of Dollars) Real Net Disposable Consumption Saving Planned Government Net Planned GDP Тахes Income (C) (S) Investment Purchases Exports Aggregate (Y) (NT) (Y – NT) (I) (G) (X-М) Expenditures C+I+G+(X-M) 5.0 1.0 4.0 3.9 0.1 1.0 1.0 -0.7 5.2 5.5 1.0 4.5 4.3 0.2 1.0 1.0 -0.7 5.6 6.0 1.0 5.0 4.7 0.3 1.0 1.0 -0.7 6.0 6.5 1.0 5.5 5.1 0.4 1.0 1.0 -0.7 6.4 7.0 1.0 6.0 5.5 0.5 1.0 1.0 -0.7 6.8 Navigation Menu O b.0.90 or 9/10. O c. 0.60 or 3/5. O d. 0.20 or 1/5. O e.0.80 or 4/5.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The following are the components of aggregate demand EXCEPT, A) government spending. B) consumption of households. C) investment by firms. D) household saving.
Real-Time Data Analysis Exercise The following table contains income and consumption data from FRED* for the fourth quarter of 2020. *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Title Value Personal Income $19.504.419 billion Disposable Personal Income $17.268.294 billion Personal Consumption Expenditures $14,542.383 billion Since personal consumption expenditures are exceeded by disposable income, the implication is that the fourth quarter of 2020 saw households engaged in saving investment both
The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP. Components Personal Consumption Expenditures (CC) $9,734.2 Gross Private Domestic Investment (II) $2,125.4 Exports (XX) $1,643 Imports (MM) $2,351 Net exports of goods and services (X−MX−M) Government Consumption Expenditures and Gross Investment (GG) $2,689.8 Gross domestic product (GDP) This method of calculating GDP, which involves summing the , is called the approach.
You are an analyst at Heys International Luggage. Your output last year of Carbon-X luggage sets was 100,000 sets, based on estimates that sales would equal 100,000 at an average price of $56.84. Heys International tries to maintain inventory at 10,000 sets. Actual sales of the luggage last year were 105,000. Considering only this result: aggregate expenditure was equal to GDP. aggregate expenditure was less than GDP. aggregate expenditure was greater than GDP. aggregate expenditure is always equal to GDP, so these sales results are irrelevant. 2 of 25 > Яншират ИРИНАРИ
Desired Aggregate Expenditure (AE) 1000 650 325 0 FIGURE 22-3 Actual National Income (Y) 45° C = 350 + (0.68)Y C = 325+ (0.65)Y C = 1000 + (0.80)Y AE I+G I Refer to Figure 22-3. Which of the following correctly describes the consumption function for this economy?
Which of the following is true: a) at equilibrium aggregate expenditure is greater than gross domestic expenditure. b) at equilibrium GDP is greater than gross domestic expenditure. c) at equilibrium aggregate expenditure is smaller than gross domestic expenditure. d) at equilibrium GDP is smaller than gross domestic expenditure or e) at equilibrium both aggregate expenditure and GDP are smaller than gross domestic expenditure
Explain some reasons why consumption spending and gross private domestic investment spending are so important. What determinants do they have in common?
Use the figure below to answer the following questions. Aggregate Expenditure (billions of 2012 dollars) 400 360 320 280 240 200 160 120 80 80 40 45° line AE 0 40 80 120 160 200 240 280 320 360 400 Real GDP (billions of 2012 dollars) The economy depicted does not engage in international trade and has no government. Planned aggregate expenditure (AE) is equal to the sum of consumption expenditure (C) and investment (I). Investment is $ billion. If investment increases by $75 billion, then real GDP increases by $ billion.
An economy's consumption function is depicted in the table below. Consumption (C) ($ billions) 100 199 298 Disposable Income (Yd) ($ billions) 0 110 220 330 440 550 397 496 595 W The economy's MPC is equal to: Round your final answer to 2 decimal places, if necessary. Do not enter a comma "," or a dollar sign ($) while entering your answer.
a. The key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by A) investment spending. B) export spending. C) government spending. D) the level of aggregate expenditure. b. U.S. net export rises when A) the price level in the United States rises relative to the price level in other countries. B) the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries. C) the value of the U.S. dollar increases relative to other currencies. D) the inflation rate is higher in the United States relative to other countries.
TOPIC: Comparing total expenditures and total production
A simple economy consists of three industries: agriculture, manifacturing and services. The input-output matrix associated with this economy is A M A 0.1 0.2 0.2 M 0.2 0.2 0.1 S 0.1 0.1 0.3 Find the gross output of goods needed to satisfy a consumer demand for 170 million dollars worth of agricultural products, 150 million dollars worth of manufactured products, and 180 million dollars worth of services. million dollars worth of agricultural products, and million dollars worth of manufactured products. million dollars worth of services.