Y = -231.8 + 0.7194X What is it mean by “hypothesis testing"? Based on equation in question (6), suppose the real GDP is expected to be $13800 (billions) in 2019. What is the forecast consumption expenditure in 2020?
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- Year GDP Disposable Income Consumption Imports 2036 $1050 $840 $830 $111 What is the marginal propensity to import? 2037 $1000 $800 $800 $100 Round to two decimal places. If your answer is 0.064 (i.e., 6.4%) enter .06. If your answer is 0.065 (i.e., 6.5%) enter .07. Do not forget to enter the negative sign, if appropriate.Fluctuation of savings and investment rates impact on GDP of any macroeconomics. Comment with the help of example and graphically as welAnalyse with a graph the effects of an increase in government spending on the IS-LM curve
- Suppose you are given the following information for an economy without government spending, exports, or imports. Cis desired consumption, Iis desired investment, and Y is inoome. Cand i are given by C=400 +06Y 1-300 a. What is the equaion for the aggregate expendture (AE) function? (Round your response for the intercept tem to the nearest whole number and for the siope tem to one decimal place) AE CYBriefly explain the reason for the near-horizontal shape of the SRAS curve on its far left.Name some factors that could cause the SRAS curve to shift, and say whether they would shift SRAS to the right or to the left.
- Suppose an economy with the following characteristics.Y = Real GDP or national incomeT = Taxes = 0.3YC = Consumption = 140 + 0.9(Y – T)I = Investment = 400G = Government spending = 800X = Exports = 600M = Imports = 0.15YGiven the information above What is the equation for Aggregate Expenditures (AE) in this economy?If all 110 million households spent the same additional dollars on appliances, electronics, and furniture as the sample 30,000 rebate receiving households did so, how much did aggregate consumption increase?Please solve these questions: G Consider the following consumption dataset over X = R³ : i 1 2 3 4 5 (1, 2, 5) 7 (2, 2, 0.1) 1.5 (2, 1, 3) 9 (3, 5, 0.5) 3.5 (1, 1, 0.5) 3 (5, 1, 0) (0, 0.5, 5) (3, 0, 1) (0.5, 0, 4) (0,3,0) 1. List all weak and strict direct revealed preferences satisfied by this dataset. 2. List all weak and strict indirect revealed preferences satisfied by this dataset. 3. Does this dataset satisfy GARP? Explain why or why not.
- a) About Country A, what is your estimate of the country's marginal propensity to consume (MPC) based on the following information on its GDP (Y) and the components thereof (in billion dollars) for two past years? Show calculation. Year 1 Year 2 c) GDP C I 11200 8000 2200 12000 8500 2400 G 800 880 The next few parts are about Country B, whose government plans to cut taxes by $24 billion as a measure to fight the current recession. The marginal propensity to consume (MPC) in Country B is known to be 34. There will be no crowding-out effect. e) NX 200 220 b) What is the initial effect (in billion dollars) of the tax cut on Country B's aggregate demand? (The "initial effect" here refers to the effect on AD after only the first round of increased spending.) What is the total effect of the tax cut on aggregate demand? Explain why it is different from the initial effect. d) How does the total effect of this $24 billion tax cut compare to the total effect of a $24 billion increase in…Disposable Consumption income expenditure (€, thousands) (€, thousands) 200 220 300 300 400 380 500 460 According to the data in the above table, calculate the marginal propensity to consume (MPC). Give only a numerical answer. Where needed, use only a point (.) for decimals (e.g., 3.25, not 3,25) and no thousands separator (e.g., 2000, not 2,000).This question has four parts. (its not a writing assignment, just asking for a numerical value or simple answer) 1.1. What is the US GDP for the first quarter and second quarter of 2020? What is the personal consumption expenditures for the first quarter and second quarter of 2020? Go to the website for the Bureau of Economic Analyses (BEA): https://www.bea.gov/ Section 1: Domestic Product and Income; Table 1.1.5 1.2. Use the information in Table 1 to analyze aggregate expenditures (AE) model below (Figure 1. Equilibrium in a Private Closed Economy). (table 1 and figure 1 are in the attachments) 1.3. Identify the mistake and explain why the graph of the aggregate expenditures line does not correctly illustrate the economy's equilibrium. 1.4. Create a graph for the aggregate expenditures (AE) model using the data from Table 1: A Private Closed Economy. Tips: Remember, the 45degree line (also known as the Keynesian Cross) is a tool that shows how differences in aggregate…
