FRED 4,000 3.600 Billions of Dollars 3,200 2.800 2,400 2,000 1,600 1.200 800 400 0 -Personal Consumption Expenditures 1965 1970 an exponential trend. a linear growth trend. a complex trend. 1975 1980 1985 1990 Source: St. Louis Federal Reserve FRED database. The best type of trend that fits this data on personal consumption spending would be...
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the last answer is a linear decline trend
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- COURSE: MACROECONOMICS - IS-LM and/or MUNDELL FLEMING MODELS Refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a NULL impact on GDP. Then, refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a MAXIMUM impact on GDP. EXPLAIN very briefly the mechanism by which each model generates that NULL or MAXIMUM impact on GDP. Hint: 2 conditions under increase of M (money) and how impact null (zero) and maximum on GDP. Example, considering both fiscal or monetary policies or liquidity trap model. Please graph and explain on detail both cases.AS1 110 A 100 AD2 AD1 900 960 1100 Real GDP FIGURE 23-5 Refer to Figure 23-5. Suppose that an increase in government purchases by 40 causes the AD curve to shift to the right, as shown. The simple multiplier is and the multiplier is 5; 1.5 4; 1.2 4; 1.5 O 4; 2.8 O 5; 1.2 Price LevelWhich country or countries are forecasted to avoid a recession in the upcoming year? C & D Only B & C Only CWhich country or countries are forecasted to avoid a recession in the upcoming year? Which country or countries are forecasted to avoid a recession in the upcoming year? ●C & D ● Only C Only B & D AV NEX'S Country Recent Q+1 A B C D Q+2 Q+3 Q+4 Quarter Real GDP Real GDP Real GDP Real GDP Real GDP Forecast Forecast Forecast Forecast 21 47 36 26 19 50 38 22 18 55 41 25 20 53 47 23 22 50 52 24
- COURSE: MACROECONOMICS - IS-LM MODEL Comment on the following statements:1.- Changes in government spending will have a greater effect on output when the demand for money is very sensitive to changes in the level of output. Graph 2.- Demonstrate under the assumptions of the IS-LM model the effect of having a consumption function with an exogenous component, an income-dependent part and a part that depends on the interest rate. GraphExercise 11.11 Optional: Suppose the central bank's monetary policy sets the interest rate accord- ing to the function: i = 3.0+2.0(T – T*) with a* = 4.0, and aggregate expenditure is the sum of: C= 200+0.75Y I = 85 – 2i G= 100 X – IM = 50 -0.15Y-3i (a) What is the equation for the ADA curve? (b) Plot the ADn curve in a diagram, not necessarily to scale, that shows the horizontal intercept and slope of the curve.Consider an economy called Xanadu for which desired aggregate consumptiondepends on income, Y. and the real interest rate, r, according toCd =100+0.7Y - 200r.Xanadu's GDP is Y = 1000 and government spending on goods and services is G=180. Xanadu's desired future capital stock is given byK* = 140 - 100ucwhere luCdenotes the user-cost of capital. The price of capital is PK =2, thephysical depreciation rate is d =0.1 and the existing capital stock is K0= 50. Trapital stock between any period t and the following period t+1 evolves accordng toKt+1 = It+(1-d)Kt where It the level of investment. Assume throughout that net factor payments from abroad (NFP) is equal to zero.Suppose instead that Xanadu is a small open economy facing a world interest rate of 1%. It follows that Xanadu's current account position is equal toA) -16B) -51C) -6D) -8
- Hello . Can you please assist with the following queston below Q.1 State the three possible relationships between production, income andspending in macroeconomic theory. Q.2 Explain the relationship between consumption and saving in the Keynesian model.16. According to the IS-LM model, what happens to the interest rate, income, consumption, and investment under the following circumstances? d. The government increases government purchases and taxes by equal amounts. th IC I M10. Consider a one-period economy which experiences the destruction of some of the nation's capital stock (say through a hurricane is de- stroyed). How should this effect equilibrium, consumption, output and labor supply? Now, let's say the government tries to offset some of the declines in capital on output and hours worked by increasing govern- ment spending. What is the likely outcome of this policy intervention in terms of consumption?
- Discussions - Discuss the following with reasonable explanations: 1. Refer to the accompanying figure. Planned Aggregate Expenditure, PAE 4.750 PANDANGAN DAN KESINETE SINT MAARTENKE 4.000 3250 #} #1124 0 108 $ # # *************** 3.000 4.000 5,000 Y PAE=1,000+ 0.75Y Output, Y I Based on the Keynesian cross diagram, if output equals 5,000, what kind of output gap exists in such a situation and how do firms respond to the gap?5:43 PM Fri Mar 17 :3 Answered ASDE.85 Answered ASDE.93 Answered ASDE.98 X Answered Question 4 Unanswered 2 attempts left Numeric answer 0 attempts left ● Type your response 1 attempt left 0 attempts left ☎ 57% Open Open Open Suppose the economy is in a recession. The output gap is $1 trillion. The AE function reads AE = 0.5 + 0.8Y. By how much should the government cut taxes to bring the economy to its full potential? Answer in trillions USD up to two decimal points, for example if the answer is $100 billion you should type 0.10 × Submit × |||09. Consider the following model. Expenditure is given by: E=C+I+G The consumption function is specified as: C=c₁+cY We assume a closed macroeconomic system so that: Y=E Which is the correct representation of income as a function of autonomous expenditures and the marginal propensity to consume? a. b. C. Y= d. Y= Co+I+G 1-c I+G 1-c-c Y= (I+G). Y=I. 1-c 1