The table below shows levels of employment, output, consumption, and saving for a private closed economy.Possible LevelsReal Domesticof Employment,Consumption,BillionsSaving,Output,BillionsMillionsBillions35$230$239-$940250255-545270271-15029028735531030376033031911653503351570370351197539036723Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) infront of those numbers.Using the consumption and saving data above and assuming planned investment is $19 billion, answer the following questions:a. What are saving and planned investment at the $390 billion level of domestic output?Saving = $billionInvestment = $billionb. What are saving and actual investment at that level?Saving = $billionInvestment = $billionc. What are saving and planned investment at the $350 billion level of domestic output?Saving = $billionInvestment = $billiond. What are the levels of saving and actual investment?Saving = $billionInvestment = $billione. In which direction and by what amount will unplanned investment change as the economy moves from the $390 billion level of GDPto the equilibrium level of real GDP?Unplanned inventories will(Click to select) v by $billion.f. From the $350 billion level of real GDP to the equilibrium level of GDP?Unplanned inventories will (Click to select)by $billion.

GDP is the final mixture of goods and services in an economy. GDP is a crucial measure of the…

Using the consumption and saving data above and assuming planned investment is $19 billion, answer the following questions: a. What are saving and planned investment at the $390 billion level of domestic output? Saving = $ Investment = $ billion b. What are saving and actual investment at that level? Saving = $1 Investment = $ billion Investment = $ billion Investment = $ c. What are saving and planned investment at the $350 billion level of domestic output? Saving = $ billion billion billion d. What are the levels of saving and actual investment? Saving = $ billion billion e. In which direction and by what amount will unplanned investment change as the economy moves from the $390 billion level of GDP to the equilibrium level of real GDP? Unplanned inventories will [(Click to select) ▼ by $ f. From the $350 billion level of real GDP to the equilibrium level of GDP? Unplanned inventories will (Click to select) by $ billion. billion.

Using the consumption and saving data above and assuming planned investment is $19 billion, answer the following questions: a. What are saving and planned investment at the $390 billion level of domestic output? Saving = $ Investment = $ billion b. What are saving and actual investment at that level? Saving = $1 Investment = $ billion Investment = $ billion Investment = $ c. What are saving and planned investment at the $350 billion level of domestic output? Saving = $ billion billion billion d. What are the levels of saving and actual investment? Saving = $ billion billion e. In which direction and by what amount will unplanned investment change as the economy moves from the $390 billion level of GDP to the equilibrium level of real GDP? Unplanned inventories will [(Click to select) ▼ by $ f. From the $350 billion level of real GDP to the equilibrium level of GDP? Unplanned inventories will (Click to select) by $ billion. billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to the table. Planned Planned Consumption Saving Planned Real GDP Investment $6,000 $1,000 $1,000 $5,000 10,000 0 10,000 14,000 1,000 15,000 18,000 2,000 20,000 22,000 25,000 26,000 30,000 If real Gross Domestic Product (GDP) equals $25,000, what is the average propensity to save? OA. 0.0 OB. 0.88 OC. 0.12 OD. 0.56
ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption is: C = 100 + 0.75Y Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 60 and Xn = 10. Recall also that, in equilibrium, the real output produced (Y) is equal to aggregate expenditures: Y = C + Ig + Xn Instructions: Round your answers to the nearest whole number.a. What is the equilibrium level of income or real GDP for this economy? Equilibrium GDP (Y) = $ . b. What happens to equilibrium Y if Ig changes to 40? Equilibrium GDP (Y) = $ . What does this outcome reveal about the size of the spending multiplier? Spending multiplier = .
Refer to the figure at right. The equilibrium level of real GDP will occur A. at point A. B. to the left of point A. C. to the right of point A. D. at the undetermined point on the graph depending upon the level of investment.
2. Public consumption of a country (two sectors) is indicated by the function C = 60 + 0.4Y. Calculate:a. Find the saving function.b. If the investment that occurs is 300, determine the balance national income.c. What is the consumption of the people of the country if the national income is 400.d. How much is the savings of the people of the country if the national income is 400.e. Make a graphical sketch of the consumption and saving functions in one image. Please solve sub parts a,b,c thank u
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true/false explain When savings equals investment, reducing savings and increasing consumption is especially effective in stimulating output.
To increase future living standards by pursuing higher current rates of investment spending, an economy must: Multiple Choice O allow higher rates of current consumption. reduce the current capital stock. reduce current rates of consumption spending. decrease the amount of future research and development spending
Based on the chart in question 8.06, if investment rises from $120 to $130 and the price level is fixed. By how much will the equilibrium real GDP increase?