PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
7th Edition
ISBN: 9781264088980
Author: Frank
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 1P
(a)
To determine
Find the actual and planned investments if Person A actually sells $3,580,000 worth of goods.
(b)
To determine
Find the actual and planned investments if Person A actually sells $4,000,000 worth of goods.
(c)
To determine
Find the actual investment if Person A actually sells $4,200,000 worth of goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $ 1 million per restaurant. It outfits each restaurant with an additional $ 200,000 of equipment and furnishings. To help partially defray the cost of this expansion, BBQ issues and sells 200,000 shares of stock at $ 30 per share.
A) What is the amount of economic investment that has resulted from BBBQ's actions? ( in millions)
B)How much purely financial investment took place?
1. What are the two major differences between the CPl and the GDP deflator index?
(5 marks)
2. Define private saving, public saving, national saving, and investment. How are
they related? (5 marks)
3. Give an example of an event that would shift the aggregate-demand curve. Which
way would this event shift the curve? (5marks)
4. a. What are the four expenditure components of Gross Domestic Product (GDP)?
Explain each of these. (10 marks)
B. Define real GDP and nominal GDP. Which is a better measure of economic
well-being? (10 marks)
5 a) Explain briefly what the consumer price index measures and how it is
constructed. (10 marks)
b) Describe the three problems that make the consumer price index an imperfect
measure of the cost of living. (10 marks)
On December 31, 2021, Annie bought a fitness center with exercise equipment and a building worth $400,000. During 2022, she bought some new equipment for $200,000. At the end of 2022, her equipment and building were valued at $590,000. What was Annie's gross investment during 2022?
Thanks!
!@$
Chapter 13 Solutions
PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
Knowledge Booster
Similar questions
- Suppose that an economy's net investment flow is I(t) = 2t + 10t1/2.Letting K(0) is the initial investment, use the definite integralto find the level of capital: a.Next 5 yearsb. Initial investment, K(0) = 100arrow_forward27. Consumption depends on the real interest rate. a) Positively; positively b) Positively; negatively c) Negatively; negatively d) Negatively; positively on disposable income, and investment dependsarrow_forwardConsider a closed economy with a gross domestic product (Y) of 800, consumption expenditure (C) of 500, government expenditure (G) of 100 and tax revenues (T) of 190. The figures are in billions of dollars. Suppose the investment expenditure function is I = 300 – 50r, where r is the real interest rate expressed as a percentage. a) State the equation between Y and the three components of expenditure. b) Calculate private saving (Sp), public saving (Sg), and national saving (S). c) Calculate investment (I). d) Calculate the equilibrium real interest rate and quantity of loanable funds. e) If the government ran a budget deficit of $30 billion in the next period, explain how this would affect the market for loanable funds.arrow_forward
- Economics a) Discuss the determinants of aggregate consumption and aggregate investment. Base onhistorical Australian data, which tends to fluctuate more – investment or consumption? You must also answer why it does this, Data must be sourced. (500 Word count) b) Suppose bad economic stats led investors to be more negative about futureprospects on earnings on investment projects. With the help of diagrams, review theimpact of this change on aggregate consumption and income. Word limit 600arrow_forward13. Which of the following is not included in investment expenditure? a) changes in business inventories b) the purchase of a new factory c) the purchase of a new home d) the purchase of common stock 16. Suppose that net national product in 2018 was $50 billion and depreciation was $15 billion. Gross national product in 2018 was: a) $35 billion b) -$35 billion c) $65 billion d) $55 billionarrow_forwardSuppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When income increases to $12,000, saving is A) $1,680 B) $1,800 C) $2,200 D) $3,000.arrow_forward
- assume you are given a $100 raise, and decide to save $20 of that money. also assume that if you make zero income in a year, you will still spend $7000. a.) what is your consumption function? b.) if you earn $20000 in a year how much will you spend? c.) will you be able to save while earning the above income?arrow_forwardHow to calculate mpc?arrow_forwardGiven that the individual is a saver, show the impact of:i) An increase in interest rate on Current and future consumption levels when SE > IEii) A decrease in interest rate on Current and future consumption levels when SE < IEarrow_forward
- At a level of real disposable income of $10,000, suppose consumption is $11,000. Given this information, we know with certainty that saving equals $0. $11,000. -$1,000. $1,000.arrow_forward* 18.Suppose the consumption equation is represented by the following: C = 250 + .8YD. When fixed investment increases by 1000, what would be the change in national income? а. 1000. b. 2000. с. 4000. d. 5000.arrow_forwardSolve it correctly please. I will rate accordingly.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education