Question
In: Economics
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 disposable income (Yd) on the horizontal axis and aggregate expenditures (AE)
on the vertical axis with a 45 degree line. Graph consumption
curve (CC) and AE (AE = C + I) curve on this graph. Indicate
equilibrium level of income on this graph.
You can draw the graph by hand but label the axis and the curves clearly.
Solutions
Expert Solution
according to savings investment
apporach equilibrium level of income is the point where savings
euals investment hence $30000
Rahul Sunny answered 2 years 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 (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...
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...
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...
Table 2: All figures in Billions of Dollars Aggregate Output/Income Aggregate Consumption Planned Investment Saving Govt....
Table 2: All figures in Billions of Dollars
Aggregate Output/Income
Aggregate Consumption
Planned Investment
Saving
Govt.
Spending
Net Taxes
1,000
680
200
120
200
200
1,100
760
200
140
200
200
1,200
840
200
-
200
200
1,300
-
200
180
200
200
1,400
1,000
200
-
200
200
1,500
1,080
200
220
200
200
1,600
-
200
240
200
200
Please show calculation.
a. Complete the table
and determine the aggregate expenditure and the unplanned inventory
change at all...
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)
Graphically illustrate the aggregate consumption and saving functions.
Graphically illustrate the aggregate consumption and saving functions. Explain these functions with at least 200 words. You may give examples.
Table 2: All figures in Billions of Dollars Aggregate Output/Income Aggregate Consumption C=100+.9Yd Planned Investment Government...
Table 2: All figures in Billions of Dollars
Aggregate Output/Income
Aggregate Consumption
C=100+.9Yd
Planned Investment
Government Purchases
Net Taxes
Aggregate Expenditure
Unplanned Inventory Change
2,400
2,170
130
200
100
2,800
2,530
130
200
100
3,000
2,710
130
200
100
3,200
2,890
130
200
100
3,400
3,070
130
200
100
3,600
3,250
130
200
100
3,800
3,300
130
200
100
a. Complete
the table by determining the aggregate expenditure and the
unplanned inventory change at all income levels
b. Determine
the marginal propensity...
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