Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 23, Problem 4.3P
Subpart (a):
To determine
Aggregate saving, unplanned investment.
Subpart (b):
To determine
MPC, MPS and Multiplier.
Subpart (c):
To determine
Aggregate saving, unplanned investment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following questions refer to this table:
None
4.3 The following questions refer to this table:
Aggregate
Output/Income
Planned
Investment
Consumption
1,000
1,500
1,500
1,875
2,250
250
250
2,000
2,500
3,000
250
2,625
3,000
250
250
3,500
3,375
250
4,000
4,500
3,750
4,125
250
250
a. At each level of output, calculate saving. At each level
of output, calculate unplanned investment (inventory
change). What is likely to happen to aggregate output if
the
economy produces at each of the levels indicated?
What is the equilibrium level of output?
b. Over each range of income (1,000 to 1,500, 1,500 to 2,000,
and so on), calculate the marginal propensity to consume.
Calculate the marginal propensity to save. What is the
multiplier?
c. By assuming there is no change in the level of the MPC
and the MPS and planned investment jumps by 125 and is
sustained at that higher level, recompute the table. What
is the new equilibrium level of Y? Is this consistent with
what you compute using the multiplier?
Chapter 23 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Similar questions
- Hand written solutions are strictly prohibitedarrow_forwardKindly give me the steps one by one how to do its and the calculation of the answersarrow_forwardSuppose GDP in this country is $480 million. National Income Account Value (Millions of dollars) Government Purchases (GG) 150 Taxes minus Transfer Payments (TT) 180 Consumption (CC) 225 Investment (II) 105 Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = (YTI, TG, YCT) = = ?million Public SavingPublic Saving = = (CT, TG, YCT, YTI) = = $millionarrow_forward
- The table given below shows the disposable income and consumption of a household. In the table below, the level of saving at a disposable income of $1,200 is: Table 9.1 Disposable Income ($) Consumption (S) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120 a. $1,200 b. $950 c. $240 d. $80 e. $1,300arrow_forwardSuppose GDP in this country is $1,540 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (GG) Taxes minus Transfer Payments (TT) 455 Consumption (CC) 700 Investment (II) 490 Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = = (t-g, y-t-i, c-t,y-c-t) = = million Public SavingPublic Saving = = (t-g, y-t-i, c-t, y-c-t) = = million Based on your calculations, the government is running a budget (surplus, deficit) .arrow_forward21. Which of the following equations is correct? A Saving = Disposable income + Consumption B- Saving = Disposable income x Consumption C- Disposable income = Consumption - Saving D- Saving = Disposable income - Consumptionarrow_forward
- Aggregate Income, Aggregate Consumption, Aggregate Saving, The value of the MPC is (Round your response to one decimal place.) Y C S $0 $200 $-200 100 250 -150 200 300 -100 300 350 -50 400 400 0 500 450 50 600 500 100arrow_forward________ Is that type of investment which is not affected by change in the level of output or incomearrow_forwardThe gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment will increase its GDP to $4.5trillion in year 2? (present your result in the nearest billion dollars, i.e., no decimal places) Assume that the average disposable income and consumption (in real $) of this country's citizen are provided in the table below. Year Income Consumption 1 60,000 50,000 64,726 51,259arrow_forward
- Assume: Yd = $ 5000 billion b = .95 a = $ 520 billionA)What is consumption (C) ?B)What are savings (S) ? C)What is APC ?D)What is APS ?arrow_forwarda) how much is the autonomous consumption in the economy and investment should be increased to achieve an income of RM400 million? b)calculate the MPS and derive the consumption c)how much investment should be increased ti achieve an income of rm400 millionarrow_forwardQuestion 1: Consumption and Savings Functions (Show your work) Disposable Income Consumption Saving 0 500 4000 5000- Please complete the table above (assume linear functions). How much is Autonomous Consumption, Autnomous Savings, mpc, mps, Write out the consumption function and the savings function. Please graph the consumption and savings schedules (graphs) for this question.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:PEARSON
Engineering 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 Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial 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