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.
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.
suppose private saving in a closed economy is $12 billion and
investment is $10 billion. Which of the following are true?
A. national saving must equal $12 billion
B. public saving must equal $2 billion
C. Government budget surplus must equal $2 billion
D. Government budget deficit must equal $ 2 billion
Suppose that this year’s velocity is 10, nominal GDP
(PY) is $50 billion, and real GDP
(Y) is $10billion
(a) What is the price level and
money supply? Please show all calculations for
full credit
(b) Suppose that velocity constant and the economy’s output of
goods and services (Y) decreased by 5 percent. What will be the
new price and new nominal GDP if the Fed increases
the money supply by 5%?
(c) Suppose that velocity constant and the economy’s output...
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
Question 1
Distinguish between private saving, public saving, and national
saving. ( 3 marks)
Explain the impact of an increase in the government budget
surplus on private saving, public saving, and national saving.
Suppose that in a closed economy the GDP is equal to $11,000,
Taxes are equal to $2,500, Consumption equals $7,000, and
Government purchases equal $3,000. Calculate private saving, public
saving, and national saving?
Suppose that investment is $160 billion, saving is $140
billion, government expenditure on goods and services is $150
billion, exports are $200 billion, and imports are $250 billion.
Is the government's budget exerting a positive or negative impact
on investment? The government budget balance is a deficit
or surplus, which is exerting a positive or
negative impact on investment. It decreases or
increases the demand for loanable funds, which _______
the real interest rate and ________ investment.
A. lowers;...
If at a given real interest rate desired national saving is $150
billion, domestic investment is $90 billion, and net capital
outflow is $70 billion, then
a.
the real interest rate will rise and net exports will fall.
b.
the real interest rate will fall and net exports will fall.
c.
the real interest rate will fall and net exports will rise.
d.
the real interest rate will rise and net exports will rise.
) Suppose that this year’s money supply is $400 billion, nominal
GDP is $1200 billion (or $1.2 trillion), and real GDP is $1000
billion.
a. What is the price level? What is the velocity of money?
b. Suppose that the velocity is constant and the economy’s
output of goods and services rises by 5%. If the Fed keeps the
money supply constant, what will happen to the price level?
c. Suppose again that velocity is constant and the economy’s
output...
Suppose that in year 1 nominal GDP for a country is
$5,200 billion. The GDP price index is
114.9, and the population is
100 million. In year 1, the real wage averages
$18 per hour and workers work
35 hours per week.
In year 2, this country's nominal GDP is
$5,800 billion. The GDP price index is
115.1, and the population is now
105 million. Assume that in year 2 the real wage
averages
$18 per hour and workers work...
Suppose country A has a GDP of $10 billion and country B has a
GDP of $2 billion. If we assume that there are only two countries A
and B in the world and that the coefficient of B can be
approximated by the inverse of the world GDP, approximately what
volume of trade is predicted to occur between the two countries if
they are both 500 miles apart and our uncertainty parameter is
given by 1.5. Suppose instead that...