Question
In: Economics
Use the information below for a four sector economy, answer the following questions: C = 400...
Use the information below for a four sector economy, answer the following questions: C = 400 + 0.75 Yd T = 80 I = 200 G = 500 X = 550 M = 650 Yd = Y- T Where: Yd = disposable income Y = GDP C = consumption T = taxes I = investment M = imports Assume that potential output (Yp) = 3500. Assume also that prices in this economy remains constant.
Please give full explanation on how you came up with the answers
i. What is the value of autonomous expenditures?
ii. What is the value of the slope of the aggregate expenditure function?
iii. What is the value of equilibrium real GDP?
iv. What is the value of the spending multiplier?
v. What is the value of the government surplus(+)/deficit(-)?
vi. What is the value of the Trade surplus / deficit ?
vii. What is the size of the Expansionary / Recessionary gap ?
viii. What is the value of Consumption (C) at equilibrium real GDP?
ix. What is the Value of Saving at equilibrium real GDP?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Use the following information to answer the questions below:
Use the following information to answer the
questions below:
note: all sales are credit sales
Income Stmt info:
2016
2017
Sales
$ 975,000
$ 1,072,500
less Cost of Goods Sold:
325,000
346,125
Gross Profit
650,000
726,375
Operating Expenses
575,000
609,500
Earnings before Interest & Taxes
75,000
116,875
Interest exp
25,000
31,000
earnings before Taxes
50,000
85,875
Taxes
20,000
34,350
Net Income
$ 30,000
$
51,525
Balance Sheet info:
12/31/2016
12/31/2017
Cash
60,000
$ 63,600
Accounts Receivable
80,000
$ 84,000
Inventory...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions [The following
information applies to the questions displayed below.] The
following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system. April 30 May 31 Inventories Raw materials $ 48,000
$ 48,000 Work in process 9,900 19,700 Finished goods 67,000 33,700
Activities and information for May Raw materials purchases (paid
with cash) 194,000 Factory payroll (paid with cash) 150,000 Factory
overhead Indirect materials 14,000 Indirect...
Use the following information to answer questions [The following information applies to the questions displayed below.]...
Use the following information to answer questions
[The following information applies to the questions
displayed below.]
The following information is available for Lock-Tite Company, which
produces special-order security products and uses a job order
costing system.
April 30
May 31
Inventories
Raw materials
$
44,000
$
54,000
Work in process
9,500
18,800
Finished goods
59,000
34,000
Activities and information for May
Raw materials purchases (paid with cash)
185,000
Factory payroll (paid with cash)
250,000
Factory overhead
Indirect materials
10,000
Indirect...
Use the following information to answer the questions below. NUT &nbs
Use the following information to answer the questions below.
NUT
250
Exports
500
Net increase in foreign ownership of U.S.based nonreserve
assets
400
Net increase in U.S. government’s foreign
assets
30
Net increase in U.S. private
assets
250
Investment income received in the
U.S.
200
Net increase in U.S. ownership of official reserve
assets
20
Imports
600
Net increase in foreign ownership of U.S. reserve
assets
100
Investment income paid abroad by the
U.S.
300
What is the current account...
Use the following information to answer the questions. State of Economy Probability of State Return on...
Use the following information to answer the questions.
State of Economy
Probability of State
Return on Asset d in State
Return on Asset e in State
Return on Asset f in State
Boom
0.38
0.06
0.34
0.16
Normal
0.52
0.06
0.15
0.12
Recession
0.10
0.06
-0.21
-0.09
a. What is the expected return of each asset?
b. What is the variance of each asset?
c. what is the Standard deviation of each asset?
Use the following information to answer the questions. State of Economy Probability of State Return on...
Use the following information to answer the questions.
State of Economy
Probability of State
Return on Asset d in State
Return on Asset e in State
Return on Asset f in State
Boom
0.32
0.07
0.28
0.16
Normal
0.46
0.07
0.19
0.08
Recession
0.22
0.07
-0.21
-0.07
a. What is the expected return of each asset?
b. What is the variance of each asset?
c. what is the Standard deviation of each asset?
Use the following information to answer the questions below that are required to ultimately calculate a...
Use the following information to answer the questions below that
are required to ultimately calculate a company’s WACC:
- Long-term bonds: 3,500 bonds outstanding with 7.20% p.a. coupons
paid semi-annually, $1000 face value, 25 years to maturity, current
market yield is 5.72% p.a.
- Preference shares: pay a dividend of 8% p.a. forever on a $15
face value, 45,000 outstanding, currently selling for $14.20 per
share.
- Ordinary shares: 175,000 shares outstanding selling for $37
per share with beta of...
Use the following information to answer the questions below that are required to ultimately calculate a...
Use the following information to answer the questions
below that are required to ultimately calculate a company’s
WACC:
- Long-term bonds: 3,500 bonds outstanding with
7.20% p.a. coupons paid semi-annually, $1000 face value, 25 years
to maturity, current market yield is 5.72% p.a.
- Preference shares: pay a dividend of 8% p.a.
forever on a $15 face value, 45,000 outstanding, currently selling
for $14.20 per share.
- Ordinary shares: 175,000 shares outstanding
selling for $37 per share with beta of...
1. Use the information below to answer the following questions. The following units of an inventory...
1. Use the information below to answer the following questions.
The following units of an inventory item were available for sale
during the year: Beginning inventory 10 units at $55 First purchase
25 units at $60 Second purchase 30 units at $65 Third purchase 15
units at $70 The firm uses the periodic inventory system. During
the year, 60 units of the item were sold.
a. Calculate the value of ending inventory using FIFO.
b. Calculate the value of ending...
Assume the BLS decided it was time for you to analyze a broader perspective of the economy. Use the following information to answer the questions below.
Critical Thinking: Assume the BLS decided it was time for you to analyze a broader perspective of the economy. Use the following information to answer the questions below. Your assigned economy has a population of 202 million. Within that population, there are 172 million adults and 30 million children under the age of 16. Some of the adults are in prison (2 million) and some are serving full time in the military (5 million) and the rest are currently all capable of working.
There are...
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