Suppose GDP is €5 trillion, taxes are €1.5 million, private saving is €0.5 trillion and public...

Suppose GDP is €5 trillion, taxes are €1.5 million, private saving is €0.5 trillion and public saving is €0.2 trillion. Assuming the economy is closed, calculate consumption, government purchases, national saving and investment.

Expert Solution

Rahul Sunny answered 2 years ago

Suppose GDP is $12 trillion, taxes are $3.6 trillion, privatesaving is $1.5 trillion, and public...

Suppose GDP is $12 trillion, taxes are $3.6 trillion, private saving is $1.5 trillion, and public saving is $0.8 trillion.Assuming the economy is closed, complete the following table by calculating consumption, government purchases, national saving, and investment.Componentamount(trillions of dollars)consumptiongovernment purchasesnational savingsinvestment

In a closed economy (in equilibrium), assume that real GDP is $15 trillion, government purchases are $1.3 trillion, public saving is $0.5 trillion, and national saving is $2.2 trillion.

ECO 252 - MacroeconomicsIn a closed economy (in equilibrium), assume that real GDP is $15 trillion, government purchases are $1.3 trillion, public saving is $0.5 trillion, and national saving is $2.2 trillion. Calculate the following: a. Taxesb. Consumptionc. Investmentd. Private savinge. The government budget deficit or surplus.Precise which one.

Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public...

Suppose GDP is $800 billion, taxes are $150 billion, private saving is $50 billion, and public saving is $20 billion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.

Consider an economy in which GDP is $8.4 trillion, public saving is -$0.2 trillion (yes, it...

Consider an economy in which GDP is $8.4 trillion, public saving is -$0.2 trillion (yes, it is a negative number), taxes are $0.8 trillion, private saving is $3.0 trillion, export is $0.4 trillion, and import is $0.5 trillion. Calculate consumption, government purchases, national saving, and investment.

In year 1 the government spends $405 million and collects $356 million in taxes. Public saving...

In year 1 the government spends $405 million and collects $356 million in taxes. Public saving in year 1 is equal to $ million and the government debt is equal to $ million. In year 2 the government spends $390 million and collects $360 million in taxes. Public saving in year 2 is equal to $ million and the government debt is now equal to $ million. In year 3 the government spends $360 million and collects $358 million in taxes. Public saving in...

In the Kingdom of Westeros suppose money supply is $0.5 million, nominal GDP is $10 million,...

In the Kingdom of Westeros suppose money supply is $0.5 million, nominal GDP is $10 million, and real GDP is $5 million during this year. Calculate the price level and the velocity of money for Westeros this year. Suppose velocity is constant and the Westerosi economy grows in real terms by 5% next year. What will happen to nominal GDP and the price level if the central bank in Westeros keeps the money supply constant? Please explain your answer briefly....

A. Suppose that nominal GDP was $13 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion in Bedrock.

A. Suppose that nominal GDP was $13 trillion in 2040 in Bedrock. In 2050, nominal GDP was $15 trillion in Bedrock. The price level fell 5% between 2040 and 2050, and population growth was 1%. Between 2040 and 2050 in Bedrock, nominal GDP growth was ???? % and economic growth was ????? %. Give your answers to one decimal place. B. Suppose that nominal GDP was $20 trillion in 2040 in Bedrock. In 2050, nominal GDP was $18 trillion in Bedrock....

Suppose the production function is written as follows: 0.5 0.5 ?=? ? Suppose that saving rate...

Suppose the production function is written as follows: 0.5 0.5 ?=? ? Suppose that saving rate (s) is 0.3, population growth rate (n) is 0.05, and capital depreciation rate (d) is 0.05. (note: when you write your equations, be careful to distinguish capitalized characters and non- capitalized characters!) 3-1. (5%) Derive the per-capita production function (i.e. ? = ? and ? = ?). ?? 3-2. (5%) Write down the key equation of the Solow model on capital accumulation per capita....

5. Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and...

5. Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $8 trillion. a. What is the price level? What is the velocity of money? b. Suppose that velocity is constant and the economy’s output of goods and services rises by 10 percent each year. What will happen to nominal GDP and the price level next year if the Fed keeps the money supply constant? c. What money supply should the Fed...

Suppose GDP equals $17 trillion, consumption equals $12.2 trillion, the government spends $3.5 trillion and has...

Suppose GDP equals $17 trillion, consumption equals $12.2 trillion, the government spends $3.5 trillion and has a budget deficit of $1.1 trillion. Calculate public saving, taxes, private saving, national saving, and investment. Now, assume that the government pursues its goal of updating the physical infrastructure of the economy (e.g. fixing roads, bridges, etc.). They decide to spend an additional $4 trillion on this endeavor (beyond their current spending). Use this new information to recalculate the totals from above for public...

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