Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet Aggregate of Investment purchases Exports (G) (C) Expenditure (AE) (1) (NX) 650 85 195 90 320 690 750 145 195 90 320 750 850 205 195 90 320 810 950 265 195 90 320 870 Find the value of the multiplier in this economy? Show your calculations. Answer:
Q: For which goods or services will the demand be relatively more or relatively less elastic? Explain…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Question 6 An engineering company is considering the purchase of one of the following three…
A:
Q: A local factory assembling calculators produces 400 units per month and sells them at P 1,800 each.…
A: In economics, business—and especially cost accounting—the break-even point (BEP) or unhealthy point…
Q: Suppose that Sam has a utility function u(x, y)= xy2 where x is the amount of good 1 and y is the…
A: Given Sam's utility function: u(x,y)=xy2 .... (1) The price of good 1 is px and price of…
Q: Homework (Ch 14) 2. The demand curve facing a competitive firm The following graph shows the daily…
A: In perfect competition, firms are price takers because there are large number of firms selling…
Q: which market structure is able to arise? a) oligopoly b) monopolistic competition <) monopoly d)…
A: Disclaimer“Since you have asked multiple questions, we will solve the first question for you. If you…
Q: corresponding population parameter. When the 95% CI ht) is given as [-4.9, 10.3], we cannot reject…
A: *Answer: Given Confidence interval for β1 = [-4.9, 10.3] H0: β1=0
Q: model of an economy with the following equa Yd he fiscal policy multiplier with respect to incon
A: *Answer:
Q: $10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400…
A: The Fisher Effect is an economic hypothesis that explains how inflation affects both real and…
Q: what is the significance of Consumer Preference to government agents?
A: Understanding consumer preferences can help you predict consumer demand because it determines what…
Q: Answer all questions from this section. For each question, identify the statement as True, False, or…
A: A.1 Quantitative easing (QE) is an unconventional monetary policy in which a central bank buys…
Q: Consider the private hire market such as Uber and Lyft. Assume that the price elasticity of demand…
A: 3)i) There exists an inverse relationship between private hire rides and public transport trips.…
Q: For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd I = 220 – 25i G…
A: IS-LM In the IS LM curves of equilibrium, (IS) is the goods market and (LM) is the money market.…
Q: Suppose the market value of a growing tree at time t is a function f(t, x), where a is expenditure…
A: The price of anything, such as an asset, that is decided by the supply and demand of the object in…
Q: 2. Activities incduded (and not included) in the calculation ofGDP The gross domestic product (GDP)…
A: When talking about gross domestic product, it can be said that it only include output that is…
Q: Consider a Keynesian model of the economy with the following equations; C = 300 + 0.7Yd = 500 TR 250…
A: The equilibrium level of income refers to that level of income at which the aggregate supply of an…
Q: At equilibrium in the simple Keynesian model of income determination, which of the following…
A: The equilibrium level of national income is defined by the point where the aggregate demand curve…
Q: With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine…
A: Given: Interest rate=8% per year To find: Market value of Machine X
Q: . Distinguish between a private nuisance and a public nuisance. What type of remedy is likely to be…
A: m. Distinguish between private nuisance and public nuisance (1) Public Nuisance is a crime, as per…
Q: 4. The cost function for a firm facing perfect competition is C(q)=1000+25q-0.5q²+0.01q^3 What is…
A:
Q: 18) A single commercial bank must meet a 25% reserve requirement. If it initially has no excess…
A: We have required reserve ratio = RRR = 0.25 and cash deposit = 2000
Q: For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd | = 220 - 25i = 240…
A: The IS-LM model is the demonstration of how the goods market and the asset market interact. The IS…
Q: Which of the following represents an effort to correct for an adverse selection problem? a. The…
A: When talking about adverse selection, it is one of the form of asymmetric information, which causes…
Q: A loan of $17,300 at 8.3% compounded annually is to be paid off by equal payments to be made at the…
A: Let the equal payments be $X each The Present value of 5 payments of $X discounted at 8.3% p.a.=…
Q: 1. Use the graph below to answer the following questions: BB, (G. BB, (G,. t,) F D. 5300 5000 Real…
A: Given information BB0 and BB1 represented budget line Budget Line=T-G +ve on vertical axis…
Q: Movement from one point to another along an isocost line implies a change in. a. The level of…
A: The isocost line is a downward sloping line and the isocost line equation is of the form of wL+rK= C…
Q: Differentiate between oligopoly and pure monopoly.
A: Oligopoly is the market structure in which there are few firms which sell either differentiated or…
Q: Cash: $104.25 billion Checking deposits: $157.4 billion Saving accounts: $270.5 billion Small…
A: Given: Cash=$104.25 billion Checking deposits=$157.4 billion
Q: Consider an individual with the following utility function, U(x, x) = ax?x5. The current price of x,…
A: Utility Maximization is the condition where consumer spent the income in such a way that maximise…
Q: We are more tolerant of the deadweight loss from monopolistic competition than that of monopoly…
A: In monopoly and monopolistic competitive firm, profit is maximised at a point where marginal revenue…
Q: There are two approaches to determine profit maximizing level of output: (1) total revenue– total…
A: Total profit is the difference between total revenue and total cost
Q: In 2020 if government investment spending was €4bn, government consumption spending was €10bn, and…
A: Given: The government investment spending = €4billion The government consumption spending = €10…
Q: Q 1(a) Critically evaluate FIVE economic characteristics of information. Q 1(b) The term Web 2.0…
A: There are developed as well as developing economies, developing economies have their own…
Q: Derive the per-worker production function for this economy if Y=zK2/3N1/3.
A: Production function shows relationship between inputs and output produced with the inputs
Q: Consider a single country and a single good. The demand curve for this good is given by QD = 144 -…
A: Hi! Thank you for the question, as per the honor code, we are allowed to answer three sub-parts at a…
Q: Consider a perfectly competitive market that was in a long-run equilibrium when a permanent increase…
A: In perfectly competitive market there are large number of firms selling identical goods.
Q: What does it mean to say that banks create money? Carefully Explain.
A: The financial institution that provides various financial services including wealth management and…
Q: d.How will the firms adjust if the full employment level of income is 1500? Is this an inflationary…
A: A recessionary output gap is when the actual output is less than the potential output and an…
Q: What amount would have you to be invested today for the future value to be $14000 after 25 years if…
A: As, future value $14000 after 25 years with the rate of return is 5% compounded semiannually, then A…
Q: Consider an economy with an upward-sloping aggregate supply curve given by: Y = Y + (n – n*) where Y…
A: Given information Agrregate supply curveY=Y+(π-πe)Y= Optimum outputπ= inflationπe= expected…
Q: Fill in the blank using the number that corresponds to the correct word or phrase:
A: Gross Domestic Product (GDP) is defined as the value of all final goods and services produced in an…
Q: Which of the following is not true for the IS/LM model? O Keynesian demand-side model O Fixed price,…
A:
Q: Why might a regulator of possibly collusive oligopolists prefer less transparency in how each firm…
A: An oligopolistic industry is one in which a small number of firms operate, each controlling a…
Q: Stretching payables refers to postponing payment of bills to their due dates or last date of…
A: Stretching payables refers to paying bills after the due date without jeopardizing the company's…
Q: Compute the firm's marginal products, and marginal rate of technical substitution. Report the…
A: Given; Production function; f(L,K)=LK Formula to calculate:- MPK=df(L,K)dKMPL=df(L,K)dLMRTS=MPLMPK
Q: ATC AVC d MR MC 100 85 70 60 50 35 20 3 6 9 12 20 21 Figure 9.1 Refer to Figure 9.1. For this…
A: The profit maximization condition is when marginal revenue is equal to marginal cost (MR=MC). From…
Q: Sutility LW 2 VP. where PxX = w × L and 0<LS 24 PL V24-4 2. Jane's utility maximization problem can…
A: A utility function refers to a function that assigns a real number to each item of consumer goods or…
Q: $10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400…
A: Intersection of demand and supply of bond determines its price and price of bond and interest rate…
Q: The main responsibility of a Central bank is: Fiscal but not monetary policy…
A: A central bank is basically a financial institution with exclusive authority over the production and…
Q: A sales representative for a company that produces electric can openers can sell x units of their…
A: We have total revenue = TR = px = 81.6x - 0.08x2
Step by step
Solved in 2 steps with 2 images
- Consider the data presented in the table: Actual aggregate expenditure or output Consumption Planned (Y) (C) (billions (billions of $) of $) 500 300 600 350 700 400 800 450 900 500 Unplanned Government Net investment spending exports (inventory (NX) change) investment (G) (billions (billions (billions (billions of $) of $) of $) of $) 100 -100 -50 S ol C 150 150 C 150 S 150 C 150 C 100 100 C 100 C 100 C Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Instructions: Enter the values into the table above. 50 50 € 50 C 50 S 50 S a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. correct. Instructions: Enter the values into the table above. If the value is negative, then be sure to enter a minus sign. b. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number. Answer is…Consider the following economy. What is the mpc in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (I') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.50 b 0.75 C 0.80 d 0.90What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (ı') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 3 4 C d 10
- Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars Planned Government Net Exports Real GDP (Y) Consumption (c) Investment (I) Purchases (G) (NX) $5,000 $4,500 $500 $700 - $500 S6,000 $5,300 $500 $700 - $500 S7,000 $6,100 S500 $700 - $500 $8,000 $6,900 $500 $700 - $500 S9,000 $7,700 S500 $700 - $500 The equilibrium level GDP is $ billion. The MPC is (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.What is the marginal propensity to consume in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (1') Purchases (G) (NX) Expenditures (AE) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 0.65 0.75 0.85 d. 0.9511:04 AM ECON 122 CAT ONE.docX Phoenix Files QUESTION ONE Is it desirable for a country to have a large gross domestic product? Explain (2 marks) QUESTION TWO You are given data on the following variables in an economy Government spending 300 Planned investment Net exports Autonomous taxes Income tax rate Marginal propensity to consume 0.5 a) Consumption (C) is 600 when income (Y) is equal to 1500. Solve for autonom ous consumption (2 ma rks) ii) 200 S 50 b) Solve for the equilibrium level of output in the following two scenarios: i) There is an income tax t=0.1, Edit 0.1 250 Q Search © | 46| 472 [ 66 c) In the economy with an income tax of 10%, what is the budget balance of the government? (2 marks) O X: × There is no income tax in the economy. Denote these two variables by Yw and YN respectively. (4 marks) d) Solve for the change in net exports that would bring the equilibrium output lev el in the economy with the income tax to the level of YN that you found in part b. specify both…
- Use the table below to answer the following questions. Real Consumptio GDP n $300 310 320 330 340 350 360 $290 298 306 314 322 330 338 (a) What is the size of the multiplier in this economy? Now, calculate the multiplier when the MPS is .5, .25, .10. What is the relationship between MPS and the multiplier? (b) If taxes were zero, government purchases were $10, investments $6, and net exports were zero, what is the equilibrium GDP? (c) If taxes are $5, government purchases are $10, investment is $6, and net exports are zero, what is the equilibrium GDP? (d) Assume that investment, net exports, and taxes are zero. Government purchases are $30, and the full-employment GDP without inflation is $330. How much must government spending be reduced to eliminate the inflationary expenditure gap?K Use the information in the table to answer the following questions All numbers are in bilions of 2012 dollars Planned Investment (1) $1,000 $1.000 $1,000 $1,000 $1,000 Real GDP (Y) $12.000 $13,000 Consumption (C) $10.100 $10,900 $14,000 $15,000 $15,000 The equilibrium level of GDP is $ billion The MPC is (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 GOP will be S billion $11,700 $12,500 $13,300 Government Purchases (G) $2.000 $2.000 $2.000 $2,000 $2.000 Net Exports (NX) -$500 -$500 -$500 -$500 -$5001.12 Study the following diagram and answer the question that follows. Expenditures (billions of dollars per year) 3500 3000 2500 2000 1500 1000 500 Figure 9.1 45 500 1000 1500 2000 2500 3000 3500 Income (billions of dollars per year) At an income level of $2,000 billion, a) Consumption equals $1,500 billion. b) Saving equals $0. c) The MPC equals 0.80. d) There is dissaving.
- What is the equilibrium in this economy? Planned Change in Net Exports (NX) Aggregate Expenditures (AE) Government Real GDP (Y) Consumption (C) Investment (1')| Purchases (G) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 1500 b 1600 1700 d. 1800What 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?(o) Calculate MPC, MPS and APC from the following data: Income (Y) Consumption 100 95 110 104