You are given the following information about a closed economy with no government: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that follow: Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain your answer.
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You are given the following information about a closed economy with no government:
Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the questions that follow:
Q.4.4 Is the equilibrium level of income also the full employment level of income? Explain
your answer.
(3)
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- Q3 In a simple macroeconomic model, the value of national income Y may be found by solving the system: G= 250 (government expenditure) T= 50 (taxation) I= 100 (planned investment) C = 0.75Yd + 150 (consumption) where disposable income Yd = Y – T. (a) Calculate the equilibrium level of national income. (b) Calculate the total increase in government expenditure and investment needed to increase the equilibrium level of national income by 20.What 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?A simple economy consists of three industries: agriculture, manifacturing and services. The input-output matrix associated with this economy is A M A 0.1 0.2 0.2 M 0.2 0.2 0.1 S 0.1 0.1 0.3 Find the gross output of goods needed to satisfy a consumer demand for 170 million dollars worth of agricultural products, 150 million dollars worth of manufactured products, and 180 million dollars worth of services. million dollars worth of agricultural products, and million dollars worth of manufactured products. million dollars worth of services.
- The 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 51,259using macroeconomic equations discuss if the answer is false. please explain answer in detail Yd=C+I+G+ NX C=C+c (Y-T) I =Ī - d. (i+f) G = G NX = X-x E-z.Y A d Y ==-- -i- E m m A: C-c.T+I-d.f+G+X m=1-c+z i=i (1 + i) = (1 + 2) - Le E E X m +1 (8) (10) (11) (12) (13) (14) (15) (16) (17) Comment clearly if the following statement is true or false. "Under a flexible exchange rate, an increase in the world interest rate i requires the domestic central bank to increase domestic returns in order to prevent a capital outflow from depreciating the domestic economy."1. What relationship does the income expenditure model represent? Why is it used?
- what is ? 1-)Expenditure Approach 2-)Income Approach 3-)Production Approach25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above O(a) Explain the difference between induced consumption expenditure and autonomous consumption expenditure. Why is not all consumption expenditure induced expenditure? (b) How is it possible for households to have a negative savings rate and what has caused this negative household savings rate? Is this negative household savings rate sustainable in the long run?
- QUESTION 7 Y C Ip G Xn $0 $800 $1,000 $1,400 −$200 2,500 2,300 1,000 1,400 −200 5,000 3,800 1,000 1,400 −200 7,500 5,300 1,000 1,400 −200 10,000 6,800 1,000 1,400 −200 Suppose you are given the data in the table above for a hypothetical economy. All data are in billions of dollars. Y is actual real GDP, and C, IP, G, and Xn are the consumption, planned investment, government purchases, and net exports components of aggregate expenditures, respectively. Calculate the equilibrium GDP (give your answer in billions of $)Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 B. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C. 4 D. 5Using the line drawing tool, graph the following two consumption functions 1000- C 3000.5Y 900- C 0.5Y 800- Label the equation: C 300 0.5Y as Co 700- and the equation: C 0.5Y as C 600- Carefully follow the instructions above and only draw the required objects. 500 n 400- n 300- n 200- n 100- 0- n 100 200 300'400 '500 600 700 800 900 1000 Aggregate income (Y) n Aggregate consumption (C)