Round to 2 decimal digits plz Use the information below for a four sector economy, answer thefollowing questions:C 550 +0.5 YdT = 90| = 150G = 700X = 150M = 100+ 0.2 YC = Consumption functionT = Tax functionI = Investment functionG = Government expenditures functionX = Export functionM = Import functionY = National IncomeYD Disposable Income function=Yf = Full Employment IncomeYe =Equilibrium incomea. What is the value of autonomous expenditures?Numberb. What is the slope of aggregate expenditure? Numberc. What is the value of equilibrium GDP? Numberd. What is the value of the autonomous tax multiplier?Numbere. What is the value of Consumption (C) at equilibrium?Numberf. What is the value of Savings at equilibrium? Number

a) Value of Autonomous Expenditures: 1400In a four sector economy, autonomous expenditures refer to…

Answered: Use the information below for a four…

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section9.A: The Simple Algebra Of Income Determination And The Multiplier

Problem 4TY

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Q3 In a simple macroeconomic model, the value of national income Y may be found by solving the system: G= 250 (government expenditure) T= 50 (taxation) I= 100 (planned investment) C = 0.75Yd + 150 (consumption) where disposable income Yd = Y – T. (a) Calculate the equilibrium level of national income. (b) Calculate the total increase in government expenditure and investment needed to increase the equilibrium level of national income by 20.
What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?
please kindly assist with the following Which of the following represent injections into the circular flow of income and spending?(a) Exports and investment;(b) Government spending and imports;(c) Government spending and saving; (d) Imports and saving. In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms;(b) Firms purchase goods from government;(c) Firms purchase goods from households;(d) The government purchases goods from households. Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a:(a) unit of account.(b) store of value.(c) medium of exchange.(d) standard of deferred payment. The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________.(a) precautionary; interest rates (b) transactions; national income (c) speculative; interest…
Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 B. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C. 4 D. 5
Consider the following data for a particular economy: GDPmp = 950 Private consumption = 750 Gross investment = 100 Net investment = 80 Exports = 250 Imports = 300 Net Indirect taxes = 50 Net external income = 100 Balance of transfers with the Rest of the World = 50 Private savings = 300 Calculate: a) NNPbp (Net National Product) and Current balance. Interpret the result obtained. b) Public savings and Totaltaxes net of Gov. transfers. Interpret the result obtained.
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.
Problems Exercise 1 Suppose a closed economy is represented by the following equations: Z= C+I+G C= co + C1x YD YD = Y-T T=100 I=0.2x Y-5000x i G=150 where Cis private consumption, I is investment, i is the interest rate set by the central bank; G is government spending, Y is income, Ypis disposable income and T represents taxes. Assume that co =250, i=2% (remember 2%=0.02), and c1 = 0.6. а. i. Given the above equations and variables, calculate the equilibrium level of output. ii. What is the multiplier for this economy? b. Now, assume that I is 0.1× Y-5000× i. Also, assume that co, C1, G, i and T remain unchanged: i. What is the new equilibrium level of output? How much does income change as a result of the change in ? What is the multiplier for this economy after the change in ? ii. ii. iv. What is the new level of consumption after the change in ? c. Assuming the same change as in (b), but letting G, i and T vary, which policies can the government do to achieve the same level of…
Answer the following questions based on the below graph AE 5000 2000 45 5000 TP Investment I: $400 Government G: $300 AE Taxes T: Net Export NX: $0 $100 a- Graphically determine the equilibrium level of output. b- Derive the consumption and saving functions. c- Mathematically solve for the equilibrium level of income. d- When the economy is at full employment the output level is $5500. How much would government purchases change to create full employment?
Assume that in country ABC: Consumption expenditure C = 70Gross Investment expenditure IG = 20Government expenditure on goods & services G = 10Exports X = 15Imports Z = 10How much is its GDP?
d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? f. If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?
13. Let the national income model consist of the following equations: Y=C+I+G C = C + c(Y-T + R) T = T +tY R = RrY C>0,0 0,0 00
Based on the economic data of a country presented in the following table, complete the table! Question: a. Based on this information, complete the blank data. b. Determine what level of equilibrium income, consumption and savings are at equilibrium c. If there is an increase in government spending by 50 what is the new level of national income. d. how big is the multiplier in this model? What does it mean? e. Draw a graph of the balance of national income and its changes

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