Refer to the diagram for a private closed economy Odo no change as GDP increases. increase by $2 for every $5 increase in GDP. increase by $2 for every $4 increase in GDP. O increase by $2 for every $3 increase in GDP.
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- The diagram below shows the consumption schedule for a private closed economy. The level of planned investment is $6 billion. a. Using the diagram, draw the aggregate expenditures schedule for this economy and then identify equilibrium GDP. Instructions: (1) Use the tool provided 'C + I'to draw the aggregate expenditures schedule for this economy. (2) Use the tool provided 'Equilibrium' to identify the new equilibrium GDP. Aggregate Expenditures Schedule 50 Tools 40 C+1 Equilibrium 30 20 10 10 20 30 40 50 Real GDP (billions of dollars) Instructions: In part b, enter your answer as a whole number. In part c, round your answer to 1 decimal place. b. What is the equilibrium GDP for this country? billion c. What is the marginal propensity to consume for this country? Aggregate expenditures (billions of dollars) 18Figure 4 Expenditures 9000 6000 3000 3000 6000 Disposible Income 1. In Figure 4, how much is government spending when disposable income is 3000? CH-G 9000 2. In Figure 4, how much is government spending when disposable income is 9000?If the government collects more in tax revenue thanit spends, and households consume more than theyget in after-tax income, thena. private saving and public saving are both positive.b. private saving and public saving are bothnegative.c. private saving is positive, but public saving isnegative.d. private saving is negative, but public saving ispositive.
- The table below shows aggregate values for a hypothetical economy. Suppose this economy has real GDP equal to potential output. Potential GDP $14 000 Government purchases $2100 Investment $300 Consumption $10 000 Net tax revenues $2000 Refering to the table above, what is th eprivate saving for this economy?Refer to the figure below to answer the following questions. Real interest rate (percent per year) 4 3 2 1 O Private saving is $ PSLF 15 20 25 Loanable funds (billions of 2007 dollars) Investment is $ In the situation above the government has a budget SLF saving is $25 billion. DLF billion. billion and nationalTable 1 adi All Numbers are in $ Billion Net Taxes 100 Output Consumption Spending 400 700 1,000 1,300 1,600 (Income) 400 800 1,200 Investment Government Spending Spending 200 en 100 100 200 100 100 200 100 aretle 1,600 2,000 100 200 100 100 200 100 Refer to Table 1. The equilibrium level of output is billion. Lütfen birini seçin: O A. 800 O B. $2,000 O C. $400 O D. $1,600 O E. $1.200
- 1. Country X has following data: C = 20 + 0.8Y4, I = 30, G = 40, Tx = 20, T, = 15, X = 60, M = 20 + 0.04Y, incoming year growth target is 600, All figures is billion. Please calculate: a. National income equilibrium! b. Consumption and saving equilibrium! c. Government income from tax! d. How much change in government consumption if they want to achieve growth target?450 Potential GDP C+1+G+X-IM) E T 4,000 5,000 6,000 Real GDP (billions of dollars per year) In Figure 11-1, to achieve equilibrium at potential GDP, the government could ONone of the above is correct. increase government purchases. decrease transfer payments. increase taxes. Real Expenditure1. Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and government spending is $5,000. In this case, private saving is _____. a $5,000 b $10,000 c $15,000 d none of the above 2. Suppose that in a closed economy GDP is $50,000, consumption is $35,000, taxes are 10,000 and government spending is $5,000. In this case, investment is _____. a ($5,000) b $5,000 c $15,000 d None of the above
- 3. Suppose the MPC is 0.8. The government wants to decrease Total Spending by $600. How should it change G to achieve this goal? Show your work?e the information in the table to answer the folowing qustiona. Al numbers are in bilions of 2012 dolars Govermment Purchases (G) $2.00 $2.500 $2.500 $2.500 $2.500 Pianned investment ( $1.000 Net Exports (NK) Real GOP (Y) Consumption (C) $12.000 $13.000 $14,000 $15.000 $10.000 $9.500 $10.250 $1.000 -$500 -$500 -5500 -$500 -$500 $1.000 $1,000 S11,750 $1.000 $12.500 $1.000 The equibrum level of GOP is S bilion The MPC is (snter your reaponse to two decimal places) Suppose that net exporta increase by $200 blion. Using the multiplier formua, determine the new level of GOP. AS200 bilon increase in net exports leads to a change in spending of S bilion, so the new level of GDP wi be billon13. The Net federal government saving (budget deficit) for the 4th quarter of 2019 is:$______ billions. 14. The Net federal government saving (budget deficit) for the 4th quarter of 2017 is: $______ billions. 15. The change in the Personal current taxes from 4th quarter of 2017 to the 4th quarter of 2019 is: ______ billions. 16. he change in the Net federal government saving (budget deficit), from 4th quarter of 2017 to the 4th quarter of 2019 is: ______ billions.