True or False: Personal Consumption Expenditures account for about 25% of GDP. Spending on Consumer Durable Goods tends to be very stable from year to year. Sales of used goods are included in GDP at  35% of their original sale price.

Q: If the government decreases taxes, disposable income does not change. falls. increases.…

A: personal disposable income is the part of personal income left after payment of direct taxes, it is…

Q: eading to a mul

A: GDP = Consumption + Investment + government spending + Net exports Multiplier effect depends on the…

Q: Corporate profits account for the largest portion of U.S. national income. True False

A: It is the total combined profit earned by corporations.

Q: When Romania joined the European Union, its imports from other EU members increased by 22% and…

A: Import Form EU  = 22% Import from other counties = fall by 8%

Q: Disposable Consumption income $0 $300 $2,000 $1,800 What is the MPC according to the table above .5…

A: The proportion of aggregate pay raise being spent by a consumer on the consumption of services and…

Q: If an individual saves $10,000 when his disposable income is $80,000. How much money does he…

A: Disposable income: Disposable income is the total income that is available to an individual for…

Q: The following is data provided for the year 2020: Capital consumption allowance $119.5 Wages 855.7…

A: National income refers to the value of commodities and services produced by a country during a…

Q: Refer to the graph shown below, which illustrates a third-party payer market for diabetes screenings…

A: From the given demand and supply curve, Without a third party, the market is in equilibrium when the…

Q: Answer the following questions:   Instructions: Enter your answers rounded to the nearest whole…

A: Given :  MPC = 0.9 Increase in investment by $11 billion

Q: An increase in net taxes will O increase the household consumption. O increase the saving. O…

A: Household consumption is positively related to disposable income.  An increase in disposable income…

Q: The rise in consumption is by $590 and the rise in income is by $700 Calculate MPC

A: The information given is as follows:- Change in Consumption = $590 ( positive )  Change in income =…

Q: (M: 10,000 Government Spending (G): 1,500 Desired Consumption (C): 8,500 If the goods market is in…

A: here we calculate the desired level of investment in a closed economy by using the given information…

Q: Find the value added when the value of output is $661 and the intermediate consumption is $222?

A: Basically in the above question, Value of the output is = $661 Intermediate consumption = $222 Value…

Q: INTEREST RATE (Percent) Supply LOANABLE FUNDS (Billions of dollars) Demand Demand Supply Scenario 1:…

A: Loanable Funds Market: In the market for loanable funds there are economic agents like governments,…

Q: Find the value of change in income if change in consumption is $600 and MPC is 0.67

A: According to the above given question, the information given is as follows:- Change in consumption =…

Q: Calculate consumption if APC is 0.88 and income is $400

A: The information being given is:- Average propensity to Consume = 0.88 Income = $400 Consumption = ?

Q: Y=C0+C1(Y-T)+I+G, C0=100 dollars, C1=0.8 (1) Suppose that tax collection (t) increases as much as…

A: Given - Y=100+0.8(Y-T)+I+G => Y=100+0.8Y-0.8T+I+G => 0.2Y=100-0.8T+I+G

Q: what will be the consumption expenditure when the income is 14330 million and the savings are 8100…

A: Generally in the question, Income is stated as = 14330 million Savings are usually denoted as = 8100…

Q: Define the term inventories?

A: Inventories refer to the stock of goods of a firm or business.

Q: Calculate MPS if change in savings is $1300 and the change in income is $2300

A: The data presented in the question above is:- Change in savings = $1300 Change in income = $2300…

Q: If households spend $80 billion on goods and $70 billion on services, how much in revenues do…

A: There are two types of market: Product market and Money market. The product market is also called…

Q: Which of the following statements is true? Business investment includes purchases of…

A: The term "business investment" refers to the expenditure of resources by a company or an individual…

Q: Aggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services.…

A: The aggregate demand refers to the total demand for all goods and services in an economy. It helps…

Q: AGGREGATE EXPENDITURES (Billions of dollars) 800 700 600 500 400 300 200 100 0 0 100 200 AE 100 AE…

A: The figure shows three aggregate expenditure lines at three various price level 100, 120 and 140.…

Q: If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350…

A: here we calculate the GDP , budget deficit or surplus , private saving and disposable income by…

Q: GDP is not a perfect measure of social welfare and the society's economic well-being because…

A: GDP is the production of goods and services during financial year. Rise GDP does not mean that…

Q: Consider an economy that is characterized by the following equations C= 400 + 0 5 Vd I = 700 - 40001…

A: C= 400 + 0.5 Yd I = 700 - 4000i + 0.1Y G= 200 T= 200 (MP)d = 0.75Y - 7500i (M/P)' = 600

Q: The GDP in Vietnam is equal to $25 millions. Company spends $7,500, and with the spending multiplier…

A: GDP refers to the value of final goods and services produced in an economy over a given period of…

Q: Do households make a distinction between spending for current expenses and spending for capital…

A: Households in different countries have different sets of income patterns. People want to spend on…

Q: Qx=1.0-2.0Px+1.5I+0.8Py-3.0Pm+1.0A Where Qx= sales of CFC cornflakes, in millions of 10-ounce boxex…

A: A regression model is a tool that can be used to forecast sales. Sales are estimated using the…

Q: Calculate the change in savings if the change in income is $1300 and the MPS is 0.23

A: Answer: Given, Change in income = $1300 MPS= 0.23 Change in savingsChange in income=MPSLet us…

Q: What percentage of the U.S. gross domestic product (GDP) consists of consumer or household purchases…

A: (D)

Q: Given the following income, spending, and savings data, please answer parts a-g below : Disposable…

A: Disposable income is the sum of consumption and savings Marginal propensity to consume measures the…

Q: Government initally increased spending from 50 million to 10Omillion . Household responded by…

A: Given: Increase in spending by government (income)=50 million to 100 million Increase in spending by…

Q: The difference between personal income and disposable income is: savings personal taxes corporate…

A: Personal income refers to the total income received by individuals from various sources, such as…

Q: Question 22 Which of the following is included in the government purchases category of gross…

A: Answer: The government purchases category of GDP includes the spending of government to purchase…

Q: All of the following are reasons that spending on durable goods is volatile except durable goods are…

A: When talking about durable goods, it can be said that these are the goods that are not required to…

Q: The following table shows data for the economy before the decrease in saving. Suppose that the…

A: Total expenditure is the sum of consumption (C), investment (I), government purchases (G) and net…

Q: Within the circular flow of income, withdrawals are composed ofA) saving, net taxes and import…

A: A model where major exchanges are being represented as the flow of goods, money, and services is…

Q: Consumption ($) Disposable Income ($) 1,200 3,200 2,100 4,000 3,000 4,800 Calculate the Marginal…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Q: The following table contains data for a hypothetical closed economy that uses the dollar as its…

A: The entire cost of the goods and services produced in a year is known as the gross domestic product.…