Question
In: Economics
Income (Yd) Consumption Expenditure (C) Saving (S) Investment Expenditure (I) Government Expenditure (G) Net Export...
|
Income (Yd) |
Consumption Expenditure (C) |
Saving (S) |
Investment Expenditure (I) |
Government Expenditure (G) |
Net Export Expenditure (NX) |
Aggregate Expenditure (AE) |
|
$8000 |
$11,000 |
$2,500 |
$5,000 |
$12,500 |
||
|
12,000 |
14,000 |
2,500 |
5,000 |
12,500 |
||
|
20,000 |
20,000 |
2,500 |
5,000 |
12,500 |
||
|
30,000 |
27,500 |
2,500 |
5,000 |
12,500 |
||
|
50,000 |
42,500 |
2,500 |
5,000 |
12,500 |
||
|
100,000 |
80,000 |
2,500 |
5,000 |
12,500 |
1. Calculate: Savings, MPC, MPS, Multiplier, and the equilibrium level of income (Y = AE = C + I + G + NX).
2. Draw a graph showing disposable income (Yd) on the horizontal axis and aggregate expenditures (AE) on the vertical axis with a 45 degree line. Graph AE (AE = C + I + G + NX) curve on this graph. Indicate break even level of income (Y=C) and equilibrium level of income (AE=Yd).Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
1. Calculate savings, autonomous consumption, MPC, MPS, break
even income, and the equilibrium level of income (Y = AE = C + I +
G + NX) in the above given information.
2. Draw a...
Income (Yd) Consumption Expenditure Saving Investment Expenditure Government Expenditure Net Export Expenditure Aggregate Expenditure $8000...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
Calculate savings, autonomous consumption, MPC, MPS, break even
income, and the equilibrium level of income (Y = AE = C + I + G +
NX) in the above given information.
Draw a graph showing...
Which COMPONENT(S) (if any) of U.S. GDP (consumption C, investment I, government spending G, and/or net...
Which COMPONENT(S) (if any) of U.S. GDP (consumption C,
investment I, government spending G, and/or net exports NX) THIS
YEAR would be affected and how (INCREASE or DECREASE) if:
(i) The government increases the monetary transfers to the
poor.
(j) A friend of yours buys some illegal
drugs.
(k) Taylor Swift releases a new single (assume
nobody has bought it yet).
(l) You buy a new car that you use to drive to
college.
Components RM (million) Autonomous Consumption (Co) 55 Investment (I) 165 government expenditure (G) 195 Personal Income...
Components
RM (million)
Autonomous Consumption (Co)
55
Investment (I)
165
government expenditure (G)
195
Personal Income Taxes (T)
255
Net Export (NX)
0
Using information in the table above, given the marginal
propensity to consume (MPC) is 80%, find the following;
Derive the consumption function.
Derive the saving function.
Derive the total expenditure (TE) curve.
Draw the aggregate expenditure curve.
What is equilibrium real GDP for Keynesian Island?
If the government increases its purchases by RM 200 million,
what will...
Using the equation national saving (S) = investment () + net export (NX) and the definition...
Using the equation national saving (S) = investment ()
+ net export (NX) and the definition of private saving (S = YCT)
and public saving (Sg-TG) explain how the Koran trade deficit
(negative NX) had increased in 1997 causing the financial crisis (5
points)
1. Saving and Investment (a). Consider the consumption expenditure function ? = ?̅ + ?(? −...
1. Saving and Investment
(a). Consider the consumption expenditure function
? = ?̅ + ?(? − ?, ?)
In each sentence below, fill in the blank with either:
increasing, decreasing, or constant. Consumption is a/an
__________________ function of disposable income. Consumption is
a/an __________________ function of the real interest rate.
(b). National saving can be written as
?=?−?−?
Substitute the consumption expenditure function from part (a)
into this equation. That is, write an equation for saving S that
depends on...
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net...
Discuss which of the following fall into the categories of
consumption, investment, government expenditure and net exports
from the Y = C + I + G + NX (X – M) identity, and whether the
impact is to increase or decrease GDP.
(a) Charles buys a second-hand textbook from Tim.
(b) When Charles bought the book, he paid Sarah $10 to collect
it from Tim.
(c) Thomas buys a new house
(d) Your firm sells meat to Indonesia
(e) The...
Discuss which of the following fall into the categories of consumption, investment, government expenditure and net...
Discuss which of the following fall into the categories of
consumption, investment, government expenditure and net exports
from the Y = C + I + G + NX (X – M) identity, and whether the
impact is to increase or decrease GDP.
(a) Charles buys a second-hand textbook from Tim.
(b) When Charles bought the book, he paid Sarah $10 to collect
it from Tim.
(c) Thomas buys a new house
(d) Your firm sells meat to Indonesia
(e) The...
Aggregate expenditure equals: A) Consumption + Investment + Government purchases + Transfers B) Consumption + Investment...
Aggregate expenditure equals:
A) Consumption + Investment + Government purchases +
Transfers
B) Consumption + Investment + Government purchases + Net
exports
C) Consumption + Investment + Federal government purchases +
Exports
D) Consumption + Government purchases – Net exports
As the real interest rate rises:
I. consumption rises.
II. net exports fall.
III. investment rises.
A) II only
B) I only
C) I and III
D) III only
When the real interest rate rises in the United States, there...
Let AE =C+I+G+NX where AE is the aggregate expenditure, C is the consumption function, I is...
Let
AE =C+I+G+NX
where AE is the aggregate expenditure, C is the consumption
function, I is investment,
G is government expenditure and NX is the net export. Given C =
100 + 0.65Y
where Y is the national income and
I = 100, G = 100+0.10Y, NX = 0
(a) Graph the consumption function with Y on the horizontal axis
and C on the vertical axis.
(b) Graph the aggregate expenditure function with Y on the
horizontal axis and AE...
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