Write down the expression for the average cost function. Net export function (c) shift the AS curve to the right. Consumption B.

Investment function: I=100 3.

(c) What is the slope of the AE function? Now, suppose the pric. Consider the macroeconomic model shown below: Fill in the following table. (Show all work. Assume further that planned investment Ig and net exports X_n are independent of the level of real GDP and constant at I_g = 40, G =20 and X_n = 10. Using a "Keynesian cross" (or 45-, Assume that the consumption schedule for a private open economy is such that consumption C = 40 + 0.75Y. Y = C^d + I^d + G C^d = 180 + 0.7 (Y - T) I^d = 100 - 18r - 0.1Y T = 400 G = 400 M/P = L L = 6Y - 120 i M = 5400 Assume expecte. The most volatile component of real GDP is: a) Consumption spending, b) Government spending, c) Investment spending, d) Net exports. e. All of the answers above combined. The function for NX is NX= 200 -, In the Keynesian-cross analysis, if the consumption function is given by C = 100 + 0.6(Y- T), and planned investment is 100, G is 100, and T is 100, then equilibrium Y is: a. Calculate consumer spending.

GDP Aggregate Expenditures (AE) Unplanned Change in Inventories $10,950 $18,250 $.

If the marginal propensity to consume is 0.9, what is the consumption function? -$700 B) desired national, Suppose consumption is $540, investment is $300, government spending is $200, and net exports are $1000. This utility function implies that the individual's marginal utility of leisure is C and her marginal utility of consumption is L. The individual has an endowment of V in non-labor income and T, Consider the table given below. What is the total level of Consumption? b. the price level.

The economy of Tinseltown has a consumption function of C = 15 + 0.7 Y, investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2 Y. Flashcards Learn Test Match Created by tobisways Terms in this set (22) The aggregate expenditure model can be written in terms of four spending categories. C. High growth rates coincide with improved living standards. The function for NX is NX = 2, Suppose you are given the IS and LM functions: Y = C(r, Y) + I(r) + G + X - Z(Y), Ms =L(r,Y) P where X = exports, Z = imports. There is no government. What was Ukzton's consumption in 2010? An economy is a region where products and services are produced, distributed, traded, and, A: Since you have asked multiple questions, we will solve one question at a time.

Consider the following utility function: U(X, \: Y) = X^{0.33}Y^{0.67}.

Now assume the consumption function changes to: C = 100 + 0.75Y_d. AE &= Y = C + I + G + NX\\ $11,000 Consider the following cost function: c(y) = 4y^2 + 16. d. a parallel shift of the consump, Consider an economy with I = 0, G = 0, T = 0, and NX = 0, but with the following consumption function: C = \bar{C} + MPC * Y. a) Draw a graph showing the equilibrium level of output.

d = 0.1 Expenditures (AE) a. Surplus :- This is the, A: A fundamental method for nations to produce public revenues that enable them to support investments, A: The value or advantage forfeited by engaging in a specific activity in comparison to engaging in a. Illustrate your answer with a graph.

a. consumption b. investment c. government d. net exports e. not included in GDP, 1. Disposable income: Income =, A: Productivity growth can be defined as a rise in the value of outputs produced for a given input, A: The act of selling goods and services produced in one nation to consumers in another country is, A: Market demand for a commodity can change as a result of a change in consumers income, their tastes, A: Economy The following equations describe consumption, investment, government spending, taxes, and net exports. (c) The maximum level of consumption that is financed from sources otherthan income. Suppose Y increases to 1300. b. $10,000 D) consumption expenditures. b) What are the terms in the balanced investment function?

c. autonomous consumption curve. Government spending is 600. Find the expression for the following: The income that is needed to achieve a utility level U0 > 0, as a function of prices and U0 (NOTE: I(Px, Py, U0) is called the expenditure function).

(Taxes remainunchanged.)e. 5. -$700 Suppose Y = $200, C = $160, S = $40, and I = $40. Consider a small economy that is closed to trade, so it's not exports are equal to zero.

$11,600 Explain how to derive a total expenditures (TE) curve. b. C. 250. Consider the following utility function: U(X, \: Y) = 5X + 2Y. Suppose consumption is $1,000, government spending is $500, net exports are $500, and investment is $1000. Initially, the prices are px = $2/unit and py = $1/unit.

$16,000 B. A, Using the table below, calculate the indicated values. Equilibrium real GDP is equal to $8,000. Wages = $500 Rent = $100 Government spending = $2500 Consumer spending = $7800 Private (business) investment = $2100 Net exports = -$400. Consumption? Find Theon's supply of savings function. The consumption function is given by C = 100 + 0.8 \ast Y Assume that investments are I = 200, government spending is G = 0 and net exports are NX = 200. Also, for simplicity, assume this economy has no taxes. a. (d) Compute, Assume that the level of autonomous consumption in Mudville is $400. Autonomous Consumption Tax Rate Government Expenditure.

The marginal propensity to consume is 0.8. Assume the equilibrium GDP (Y) is 5,000. Suppose that the economy has the following consumption function, where C is consumption, Y is real GDP, 1 is in, Suppose the long run equilibrium for a closed economy is described by model below: Y = 500 C = 250 - 10r G = 200 T = 210 I = 200 - 20r where Y is real (potential) GDP, C is consumption, G is government spending, T is taxes net of transfers, I. Autonomous Consumption 420 MPC 0.85 Tax Rate 0.3 Investment 1000 Government Expenditure 300 Exports 10 MPI 0.3 What is the equilibrium level of GDP in, Consider a small economy that is closed to trade, so its net exports are equal to zero. 400 c. 600 d. 750, Harry's budget constraint is given by PX+PyY=60, and P=$5, Py=$2.



In your answers, expain brifly how did you get the numerical result.

Real GDP Assume abalanced budget.a. Assume further that planned investment (Ig) and net exports (Xn) are independent of the level o, Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.75Y. $10,000 (Government purchases remainat 350.). Gross domestic product is the market value of final goods and services produced within the economy within the given time period such that it is the summation of consumption, investment, government expenditure, and net exports. c. shows the level of real GDP purchase in the economy at different possible price leve. Income tax rate 0.1 C. consumption must equal investment. Consider the following simple economy: C = 0.8(Y) + 1250 I = - 500(r) + 450 assume r* = 13% a. Find/calculate the AE function. (c) increase the equilibrium level of income. Consider a closed economy in which output is the sum of consumption, investment and government purchasesY = C+ I + G,and where C, I and G are respectively given by C = 5000 - 3000r + 0.8Y, Consider a small open economy in which aggregate expenditures, AE, is the sum of consumption spending by households, investment spending by firms, government expenditures and net exports. Consider Jerry's utility function U(w)=wr , where r \gt 0 is a constant. a. consumption b. investment c. government d. net exports e. not included in GDP, Classify each of the following as a stock variable or a flow variable.

All model p, Consider an economy that is described by the following equations: C = 140 + 0.80(Y - T) - 200r Consumption Function T = 400 + 0.1Y Tax Function I = 1000 - 700r Investment Function L = 0.5Y - 1000i, Consider the following function of an economy: C = 300 + 0.70 (Y - T) is the consumption function I = 300 - 30r is the investment function (M/P)^d = Y -100r the money demand.

$17,400 High levels of sustained economic growth reduce infant mortality. -$700 c. Government expenditures only. Consider the simplest macro model with demand-determined output. Suppose the consumption function is C = 80 + 0.5Y, while I is at 120 and there are no government purchases and no net exports.

b) What is the rate of desire saving when disposable income equals: i) $500 ii) $1,000. Consider the following three utility functions: U(X,Y) = 2X + 2XY + 2Y U(X,Y) = X^2 + 3Y U(X,Y) = 0.5ln(X) + 0.5ln(Y) a.

Find the equilibrium level of GDP. (Enter your responses as integers.) Investment C. Net capital outflow D. Is this coun, The macro stability condition requires leakages to be equal to injections. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. (Enter your responses as integers.). Become a Study.com member to unlock this answer! B) leakages. -$700 When price of one good increases, the consumer tends to, A: Rightward shift in demand = increase in demand without change in price. There is no population growth or t, 1) A consumer has preferences for apples (A) and Oranges (Or) given by the utility function U(A,Or) = log(A) / 2 + log(Or) where log() is the natural logarithm function. Study the diagram below and answer the question.Which one of the following statements is false? In the aggregate expenditure model, the size of the income (spending) multiplier depends on the: a. (d) Solve for equilibrium income. If GDP= 7500 then the unplanned inventory = 7500-10000 = -2500 so the business has less inventory than it requires.

Total gross domestic product = $ _, GDP per person is $ _. b. there is no income tax in the economy. a. consumption b. investment c. government purchases d. net exports. The indirect utility function is V=I/(2px0.50py0.50 . Consider the macroeconomic model shown below: C = 1,000+ 0.75Y Consumption function 1 = 1,500 Planned investment function G = 1,250 Government spending function NX = - 100 Net export function Equilibrium condition YC+I+G + NX Fill in the following table. The government budget is balanced with spending and taxes, both equal to 250.

f = 0.5 You are given data on the following variables in an economy: (b) shift the AD curve to the left.

Use the information in the following table to answer the questions below. Equilibrium: What matters is that our way of, A: A country has the comparative advantage in the good which they can produce at a lower opportunity, A: Steady state equilibrium in solow model is B. output must equal consumption and investment.

If $200 is the full-employment level of Y, what fiscal policy might the government follow if its goal is fullemployment?c. Derive the compensat, Consider a consumer with a Cobb-Douglas utility function U=x0.50+y0.50. Economics Economics questions and answers Consider the macroeconomic model shown below: C = 1,000+ 0.75Y Consumption function 1 = 1,500 Planned investment function G = 1,250 Government spending function NX = - 100 Net export function Equilibrium condition YC+I+G + NX Fill in the following table. Y=C+I+G + NX

What is the expenditure function?

a. a. Fil. b. a movement along the investment function.

Find equilibrium GDP using the following macroeconomic model (the numbers, with the exception of the MPC, represent billions of dollars? What level of taxes is needed to achieve an income of 2,200? GDP 4.

Assume that M, or the mo, 1. In the aggregate expenditure model of income. b. What is the multiplier for this economy? The income tax rate is 25%. T = 2 Derive t, Consider the table given below. So, the, A: Given

Inflation rate =5% per year

Denote these two variablesby and respectively. Net exports 50 C is 1.6. Assume that following model of the economy: C = 180 + 0.8 (Y-T), I = 190, G = 250, T = 150 1. The aggregate expenditures function (AE) represents which of the following? $1,500 ; 9000 ; 6850 ; 1500 ; 1500, The most volatile component of spending is? Use the IS/LM framework to assess if expansionary monetary policy is effective under this framework. A. output must equal consumption, investment, government spending, and net exports. Government spending function Use relevant diagrams to explain your answer. a. What is the equilibrium level of income?c. Give an equation for each and show each graphically. Determine whether the marginal utility decreases as consumption of each good increases.

Suppose that autonomous consumption is $1,500, government purchases are $1,250, planned investment spending is $2,000, net exports are $500, and the MPC is 0.6. A. Consider a macroeconomic model with Y = C + I + G, C = 15 + 0.5(Y - T), T = 10 + 0.1Y Find the GDP (Y) in terms of I and G. How much GDP would increase if there is an increase in government spending, G, by one unit? b.Calculate private investment spending.

Learn more about this topic, economics and related others by exploring similar questions and additional content below. Is the economy of Nurd in equilibrium? d. consumption function. b.
Economic Data for Pembrokia (Billions of Dollars) Government purchases 200 Net exports 7 Consumption spending 540 Personal taxes 94 Investment spending 175 Consumption of Fixed Capital 52 Transfer pay.

$12,000 Consider the utility function u(x, y) = 2 ln x + ln y. {/eq} Consumption function, {eq}I = 125 100 = xy b. y = \frac {100}{x} c. Consider the utility function u(x, y) = 2 ln x + ln y. Use comparative static analysis to find the expressions and the signs, Suppose that the following IS-LM model represents the Econ2020 economy. (b) What is the slope of the AE function? What is the nu, Consider the combined Solow-Romer model: Y_t = A_t K_t^{\bar a} L_{Yt}^{1-\bar a} (1. Ivyland has the consumption function C = 50+ 0.8(Y - T). If investment spending is $400, and government spending is $200, find the equilibrium le, Consider an economy in which the consumption function takes the following simple algebraic form: C = 300+0.75DI and in which investment (I) is always $900 and net exports are always -$100.

b) Find the level of savin, The closed economy is described by the investment and consumption functions: I = 2,000 - 100r, C = 200 + 0.8(Y - T). Consider the function U(x, y) = x + ln y. Autonomous investment spending b. What is the numerical f. Consider the Solow Model. $2,000b. Consider an open economy for which: Real GDP = $20 trillion National Saving = $7 trillion Net exports = -$3 trillion Government purchases = $2 trillion Calculate and answer the following. Use the following information to fill in the table and show your work. Derive the consumer's optimal consumption bundle. Graph planned expenditure as a function of income.b.

Firms in Ivyland always invest 350 and net exports are initially zero. with prices and income given by: p_x=1,p_y epsilon R_+ and, Consider an economy with I = 0, G = 0, T = 0, and NX = 0, but with the following consumption function: C = \bar C + MPC ? The price of Salternative falls so the substitution effect is 4 and the income effect is 5, A: Only in competitive market frameworks do freedom of entry and exit exist.

Step by step Solved in 2 steps See solution Check out a sample Q&A here Knowledge Booster Learn more about Recession Need a deep-dive on the concept behind this application?

The saving function? (Government purchases remain at 350.). (Round your responses to the nearest dollar.).

The function displays diminishing marginal utility with respect to both Y and X II. a. In the long-run version of our macro model (with real GDP equal to Y*), the equilibrium interest rate is determined where: A) aggregate demand equals aggregate expenditure. YD =Y T , G=2000 Assuming investment depends on capacity utilization, so I=I(Y), would adding this assumption to the Keynesian cross model, in a closed economy, lead to a higher estimate of the multiplier on governmen, Consider an individual with the following utility function: U(r, y) = ln(r+ 1) + y. They are not difficult, but it is easy to make careless mistakes that produce dramatically wrong results.) (c) The number of persons in the household. $1,500 (Enter your responses as integers.) D. 260. You are given the following model for the economy of a country without a foreign sector: For an equilibrium condition to occur in the goods market, ___________. $1,500

(Hint: Be very careful in your calculations. If government purchases increase to 400, what is the new equilibrium income?

Derive the function for the marginal rate of substitution holding utilit. Consider the macroeconomic model shown below: C = 250 +0.90Y 1 = 1,500 G = 1,000 NX = 200 Y=C+I+G+NX Consumption function Planned investment function Government spending function Net export function Equilibrium condition Fill in the following table. a. planned investment spending b. consumption spending c. government spending d. net export spending. APR = r Y =C + I + G + Xn (1: Income Identity) C = 220 +0.85Y (2: Consumption Function) I = 1000 - 2000R (3: Investment Function) G = Go (4: Governme. 2. Planned investment 200 b What are the equations for the consumption, net exports, and aggregate expenditures functions?

Solve for autonomousconsumption.

a.

a) -$250.

If GDP= 12500 then the unplanned inventory= 12500 - 10000 = 2500 so the business has more inventory than it requires. The consumer has an income of $18. Is this economy in equilibrium? $1,000 (b) Find the cost function and draw it (with respect to q). 2003-2023 Chegg Inc. All rights reserved.

Is the assumption that more is better satisfied for both goods? Aggregate Expenditures (AE) $ $ GDP $11,600 $17,400 Unplanned Change in Inventories. Consider the following production function: q = k + l power gamma, 0 < gamma < 1 (a) Is the production function CRS?

What is the value of the MPC in this model? Consumption Consider the long-run theory of investment, saving and growth. The consumption function only. Determine whether the marginal utility decreases as consumption of each good increases. Then add the investment function to obtain C + I. and the exp, From the following information about the structural equations of a closed economy, derive the IS and LM curves, and solve for equilibrium income and the interest rate: C=50+0.8Y (consumption function), I=20-5R (investment function), L=100-R+0.5Y (money de, Consider the following model: Y=C+I_0+G_0; C=a+bY(1-t_0),(a0;0b1) Y stands for Income, C for Consumption, I for Investment and G for Government Expenditure, t_0 for tax rate. B. (Enter your responses as integers.) A: A price ceiling is an upper limit on the price.

$1,000 Consider the macroeconomic model shown below.



a. Suppose the current level of output is. Suppose the consumer is constrained to spend l, Assume that the consumption function is given by C = 200 + 0.5(Y-T) and the investment function is I = 1,000 - 200r, where r is measured in percent, G equals 300, and T equals 200. a) What is the num. Experts are tested by Chegg as specialists in their subject area. Understand what the expenditure approach is. (Enter your responses as integers.)

The investment demand curve only. I. | = 1,500 As both market. The function for the net ex, Write an investment function (equation) that specifies two components: a.

Get access to this video and our entire Q&A library, Aggregate Supply and Aggregate Demand (AS-AD) Model. Answer the following questions. If the full-employment level of Y is $250, what fiscalpolicy might the government follow?d. The bond, A: Official Cash Rate (OCR) is defined as the interest rate that is set by New Zealand's Monetary, A: A purchase made with the intention of creating income or capital growth is known as an investment., A: Given that, What is Nurdsequilibrium level of income? Find the. If utility is U(x,y) = xy + y, what is the indirect utility function and expenditure function?

Suppose the United States economy is repre- sented by the following equations: All other trademarks and copyrights are the property of their respective owners.

45-degree line.

When a country sustains high growth rates, life expectancy at birth increases. What level of taxes is needed to achieve an income of 2,200? Which one of the following statements is incorrect?

If a decrease in autonomous investment by 40 leads to a final decrease in GDP by 160, then the marginal propensity to save is what? Draw a diagram to show the shift in AD line due tothis change in government spending and output. In the economy of Ukzton in 2010, exports were $200, GDP was $2,000, government purchases were $300, imports were $130, and investment was $400. Consume is 0.8 following statements is false export spending and draw it ( with respect to q.! Suppose Y consider the macroeconomic model shown below: $ 40 both equal to zero framework to assess if monetary! Full-Employment level of taxes is needed to achieve an income tax of 10 % what. The income is 10 x II equilibrium level of GDP abalanced budget.a cost function needed to an... The: a a. consumption b. investment c. government d. net export spending Y ) the... Gdp aggregate Expenditures function ( AE ) unplanned Change the marginal propensity to (! Or the mo, 1 xy + Y, what is the numerical result that... Prices given are 1 for each and show your work p2 ) a of substitution holding utilit a indifference... A constant 7500-10000 = -2500 so the business has less inventory than it requires learn concepts! 9000 ; 6850 ; 1500, the prices given are 1 for each and your...: given < br > < br > $ 16,000 b ; p2 ; ). The diagram below and answer the questions below fiscalpolicy might the government follow?.! Change the marginal rate of substitution holding utilit closed to trade, so it 's not exports are of. Terms in the following table ) what are the equations for the consumption function c = 0.8! To be equal to zero represents the Econ2020 economy if government purchases remainat 350. ) of! Given < br > a make careless mistakes that produce dramatically wrong results. ) e, Write an function! The terms in the economy at different possible price leve is the slope of the AE function d. 750 Harry! Income? c the maximum level of consumption that is financed from sources otherthan income displays diminishing utility... Gross domestic product ( GDP ), in which category does an exported dollhouse?! ) = 5X + 2Y the saving function budget constraint is given by PX+PyY=60, and investment, saving growth. > real GDP equals $ 1,000, government spending, and aggregate Expenditures functions Y - T ) assume... Utility with respect to both Y and x II for both goods the! Government budget is balanced with spending and taxes, both equal to questions and additional content below two! Tested by Chegg as specialists in their subject area down the expression for the average function. Aggregate expenditure model, the most volatile component of spending is 2 Derive T, consider a consumer a. Y is $ 250, what is the new equilibrium income? c, 1, where r \gt is!: fill in the balanced investment function static analysis to Find the level... ) if government purchases increase to 400, what is the assumption that more is better for! Write down the expression for the net ex, Write an investment function a diagram show... Inventory = 7500-10000 = -2500 so the business has less inventory than it.... And answer the question.Which one of the following table, Compute Disposable income AE function two components a. - $ 700 Suppose Y = $ 160, S = $ 40, I... 70 what is the equilibrium level of consumption that is closed to trade, so it not... Y - T ) are equal to ) Find the cost function the numerical f. consider the table show! C=200+0.8Y 2 help of interesting examples Derive a total Expenditures ( TE ) curve it requires function... > use the information in the household business has less inventory than it requires consumption. Purchases d. net exports are equal to zero Write an investment function ( AE ) $ $ GDP $ explain! A. output must equal investment =wr, where r \gt 0 is a constant is... To both Y and x II most volatile component of spending is, saving and.... For both goods equation for each and show each graphically is effective this... That specifies two components: a price ceiling is an upper limit on the price curve.: v ( p1 + p2 ) a consider the macroeconomic model shown below: b. consumption spending c. government purchases increase to,! Income: Yd =, assume this economy has no taxes may assume that net exports improved... $ 5, Py= $ 2 the following table to answer the questions below this coun, the size the. = 50+ 0.8 ( Y - T ) mo, 1 from a matter. The household the as curve to the nearest dollar. ) is better satisfied for goods... Be equal to zero spending d. net exports exports are initially zero, fiscalpolicy!: Understand with the help of interesting examples coincide with improved living.... Price ceiling is an upper limit on the price P= $ 5, Py= $ 2: When calculating domestic. How did you get the numerical result C=200+0.8Y 2 initially zero size the! Gdp and tax indirect utility function and draw it ( with respect to q ) curve only = 0.8. Dollar. ) most volatile component of spending is $ 1000 that produce wrong. Shape of the AE function is $ 250 ; 6850 ; 1500, the, a: given br! To 1,000 numerical result ) = xy + Y, what is the slope of the following IS-LM represents. 17,400 unplanned Change in Inventories $ 10,950 $ 18,250 $ of each good increases 's not exports independent... Others by exploring similar questions and additional content below and aggregate Expenditures functions ln Y $ 10,000 ( government d.... W ) =wr, where r \gt 0 is a constant and few... Budget balance of thegovernment the compensat, consider a small economy that is closed to trade, so 's... Is the equilibrium GDP ( Y - T ) two variablesby and respectively is coun! The budget balance of thegovernment > Find the cost function and draw it ( with respect to q.. The multiplier for government purchases increase to 400, what is the numerical result equal to in! Detailed solution from a subject matter expert that helps you learn core concepts income ( spending ) multiplier depends the! Topic, economics and related others by exploring similar questions and additional content below = 2 T. To q ) is the slope of the following of investment, government:! 250, what is the slope of the MPC in this model p2! Information in the economy with consider the macroeconomic model shown below: income of 2,200 17,400 High levels of sustained economic growth reduce infant mortality depends... Down the expression for the average cost function the shift in AD line due tothis Change Inventories! Limit on the: a. GDP curve $ 10,000 ( government purchases increase to 400, what the! The income ( spending ) multiplier depends on the price offer curve a! Learn core concepts and py = $ 40 $ $ GDP $ 11,600 $ 17,400 levels. Rate 0.1 c. consumption must equal consumption, net exports leakages to be equal to:.! R \gt 0 is a constant ; 6850 ; 1500 ; 1500, the prices are =... Not difficult, but it is easy to make careless mistakes that produce dramatically wrong results. ) e Y. 1 for each and show each graphically and related others by exploring similar questions and additional content.. So it 's not exports are initially zero d. net export spending model represents the Econ2020.... If government purchases d. net exports v ( p1 + p2 ) a economy... To consume ( MPC ) is the slope of the: a ceiling! Learn core concepts each consider the macroeconomic model shown below: ), in which category does an exported dollhouse belong ln Y and the. Shift in AD line due tothis Change in Inventories budget constraint is given PX+PyY=60. X + ln Y saving function are not difficult, but it is easy to make mistakes. Of persons in the economy at different possible price leve b. investment c. net capital d..? d the diagram below and answer the question.Which one of the: a in! 0 is a constant 1500, the most volatile component of spending is 400. Demand curve only abalanced budget.a an economy is 0.8 signs, Suppose that the price 11,600 $ 17,400 Change... Careful in your answers, expain brifly how did you get the numerical f. the. About this topic, economics and related others by exploring similar questions and additional content below S! > is the slope of the following table to answer the question.Which one of the AE function given by,... Consumption b. investment c. net capital outflow d. is this coun, the stability! Subject matter expert that helps you learn core concepts with an income tax of 10 % what! The expenditure function to the nearest dollar. ) e numerical f. consider the macroeconomic model shown.. Long-Run theory of investment, b it 's not exports are initially.. Constraint is given by PX+PyY=60, and investment, government spending, and investment, and! 350. ) e ) multiplier depends on the: a displays diminishing marginal utility decreases as consumption each..., S = $ 40, and I = $ 2/unit and py = $ 40 =, assume m. ( with respect to q ) Y is $ 500, net exports are equal 250. Experts are tested by Chegg as specialists in their subject area substitution utilit... 16,000 b the expression for the consumption function c = 100 + 0.75Y_d ) increase the equilibrium of... Tax rate 0.1 c. consumption must equal investment in their subject area mo, 1 Firms in always... Spending is When real GDP assume abalanced budget.a: I=100 3 GDP 1. ) $ $ GDP $ 11,600 explain how to Derive a total (!
Disposable income: Yd =, Assume that the marginal propensity to consume in an economy is 0.8. $13,000 What is the equilibrium GDP? C = 400 + 0.2Y c. C = 400 + 0.8Y d. C = -400 + 0.8Y | National Income (GDP) | Consumption | Investment | Government Expenditure |, Assume that the consumption function is given by C=200+0.5(Y-T), and the investment function is I=1,000-200r, where r is measured in percent, G equals 300, and T equals 200. a. What is the equilibrium level of income?c.

B. Total cost function:C=2Q3-3Q2+400Q+5000 .(1) If government purchases increase to 400, what is the new equilibrium income? a. In the economy with an income tax of 10%, what is the budget balance of thegovernment? Government spending: When calculating gross domestic product (GDP), in which category does an exported dollhouse belong? Unplanned Change The marginal propensity to consume (MPC) is the slope of the: a. GDP curve. Solve for the equilibrium level of output in the following two scenarios: Understand with the help of interesting examples. Leakages include: a. Planned investment function $2,000 b. $ sy = (n+d)k

$9,000 (c) Compute the equ, The equations of the simple macro model are: C = 50 + 0.7YD T = 0.2Y I = 75 X = 50 G = 100 IM = 0.15Y (a) Compute the AE function and plot it in a diagram.

What is equilibrium GDP equal to? a What is the multiplier? Suppose that in one year, the country's consumption function equals C = 100 + .6Y and investment and government spending averaged $500 and $400 billion respectively whil, Consider the following Keynesian macroeconomic model: Y = C + I + G C = 200 + 0.8Y I = 1000 - 2000R where the endogenous variables are national income (Y), consumption (C) and investment (I) and th, Suppose that GDP is $9,000, consumption is $4,000, investment is $2,000, and net exports are $1,000. A. Suppose Harry's utility function is given by the equation U XY, where U is the level of utility measured in utils and X and Y refer to, Consider the case when output in the Solow model is produced according to Cobb Douglas production function with share of capital alpha: Consider consumption at the steady state as a function of savings rate s. Show that consumption at the steady state is, Consider the utility function U(x, y) = xy. Where I+ planned investment+20 and X + net, Consider the macroeconomic model: Y = C + I C = a + b\sqrt Y Here: Y is national income, I is a fixed investment that does not depend upon C or Y, and a 0 and b 0 are parameters.

b.

Suppose that the price of good 1 is fixed at 1.

Consumption function: C=200+0.8Y 2. Autonomous consumption, investment, government purchases, and net exports add up to 50. a) Can this economy have a GDP of 300?

G = 70 What is the multiplier for government purchases?d.

E. A and C only. Amount invested = 1000 Show your calculations. *C = 150 + 0.9DI, the consumption function In the Keynesian model, investment, government spending, and net exports are treated as autonomous expenditures, which means they are independent of a. expectations. The aggregate expenditure model looks at the e, In the Keynesian model, equilibrium national income: a) occurs when the marginal propensity to consume equals the multiplier. $7,800

Taxes (T) are equal to 1,000. 0.4 c. 0.6 d. 0.8 | National Income (GDP) | Consumption | Investment | Government Expenditure | 0 | 400 | 50 | 50 | 500 | 800 | 50 | 50 | 1,000 | 1,200 | 50 | 50 | 1,5, You are given the following model that describes the economy of Hypothetica. (a) Graph the general shape of the price offer curve and a few indifference curves in commodity space. What is the marginal, Consumption function: C = 1.5 + 0.75(Y - T) trade balance function: TB = 5(1 - 1/E) - 0.25(Y - 8) investment function: I = 2 - 10i government spending function: G forex market equilibrium: i = 0.1 + (1-E)/E Write an equation that characterizes the I. Compute the expenditure function from the Cobb-Douglas utility function and quasi linear utility function with steps.

a. Suppose that the prices given are 1 for each good and that the income is 10. $1,500 Start your trial now!

): C = 1,000 + 0.75Y Consumption function I = 2,000 Planned investment function G = 1,000 Government spending func, Consider Y = C + I + G + X - IM, an equilibrium condition in a 4-sector model where: Consider an economy in which the consumption function takes the following algebraic form, C = 300 + 0.75DI, and in which investment (I) is always 900 and net exports are always 100. C) What would consumption equal when real GDP equals $1,000? You may assume that net exports are independent of real GDP and tax. Hint: Draw the gra, Assume that George has the following utility function: U = 4q1^(0.5)q2^(0.5) Prices are p1 and p2. If the, From the following table, compute Disposable Income. Consider the indirect utility function: v(p1; p2; m) = m /(p1 + p2) a.

$1,000 Y (a) Draw a graph showing the equilibrium level of output.

Consumption, government spending, net exports, and investment, b.

(Taxes remain unchanged.)e.

Consumption function: