a) Based on the information given on a hypothetical economy, answer the following questions. Saving function ( S) = -150 + 0.25Yd Investment (I) = 100 Government Expenditure (G) = 200 Taxes (T) = 100 iv) Find the value of investment multiplier v) What is value of autonomous consumption vi) Sketch the diagram to show your answer in (b)
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- A) :What is S if Y=200, AE=260, C=220 and I=40 in an imaginary economy?B) : If the disposable income is 200 and the consumption expenditure is 220 in an imaginary economy, what are the savings? C) University Café earned 20 TL by selling 10 bagels in one day. The total cost of 1 bagel is 0.5 TL. It is assumed that the cafe has no other costs. What is the firm's accounting profit?Investment 0.30 rate 0.25 0.20 0.15 0.10 0.05 0.05 0.10 0.15 0.20 0.25 0.30 Saving rate 19) Given the above graph, at the green dot, we can state: a) Saving rate> Investment rate and (X – M)> 0 b) Saving rate 0 d) Saving rate > Investment rate and (X – M) < 0 20) Exponential growth implies that: a) Growth rates can only be positive. b) Growth rates will alternate between positive and negative values every consecutive period. c) Relatively large differences in growth rates will translate into minor differences in the level of GDP per capita many years growth. d) Relatively small differences in growth rates will translate into substantial differences in the level of GDP per capita after many years of growth. 4DI (1) $0 10 с 20 30 401 50 DI (2) с DI (3) $4 $0 $65 11 80 125 18 160 185 25 240 245 32 320 305 80 74 39 400 365 100 92 (Advanced analysis) Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. When plotted on a graph, the vertical intercept of the consumption schedule in economy (3) is ______and the slope is O $2; 0.18 O minus $2; 0.9 O $100; 0.5 O $2; 0.9 C $0 20 40 60 $2 20 38 56
- Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX= - 2000 A.) Investment is $9,800 B.) Investment is 12,000 C.) Investment is 3600 D.) Investment is 1,200Advanced analysis) Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. At a(n) $1,200 level of disposable income, the level of saving isConsumption/Savings 1000 800 600 400 200 0 -200 Select one: 200 400 600 800 1000 1200 1400 1600 S Refer to the graph above to answer this question. What is the equation for the saving function? A. S=200+ 0.4Y. B. S=-200+ 0.6Y. X C. S-200+ 0.8Y. OD. S-200 +0.2Y. OE. S=200 - 0.2Y. Income
- You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)Assume: Yd = $ 5000 billion b = .95 a = $ 520 billionA)What is consumption (C) ?B)What are savings (S) ? C)What is APC ?D)What is APS ?Consumption and Savings Functions Disposable Income Consumption Saving -50 100 200 400 a. Please complete the table (assume linear functions) b. How much is Autonomous Consumption and Autonomous Savings? C. How much is mpc, mps, and E ? Write out the consumption funetion and the savings function, Using the data from the table, please graph the consumption and savings schedules in a model. d. e. For an increase in disposable income of $2000, using the current mpc, show five rounds of increases in planned expenditure. f.
- Savings (thousand) Consumption (thousands) 6 Panel A Consumption Move this point along C C Y=C+S O Macmillan Learning Adjust the interactive graph in order to observe the relationship between income, consumption, and saving changes as income increases. Use the graph to help you answer the following questions. 2 3 4 5 6 Panel Bincome (thousands) Savings 4 5 6 S Income (thousands) a. At an income of 4000, how much is consumed? How much is saved? Consumption = $ -500 Savings = $3500 O Consumption = $0 Savings $4000 = Consumption = $ 3500 Savings = $-500 O Consumption = $4000 Savings = $0n an effort to make sales projections, M/s K, B and A, the three B-school executives of Vengaboys Inc., were discussing about the national income and its growth in Ibiza. K had estimated a linear consumption function for Ibiza to be C = 100 + 0.6 Y, and investment to be I = 100 per ear. In Ibiza, there was no income tax and government spending was minimal (assume 0). Ibiza was a closed economy, and hence no exports and imports. (i)K immediately knew what the investment Multiplier was. Can you find out? (ii)What is the level of income in Ibiza? (iii)K estimated that with Government spending 100 on a new road to be constructed, the income levels are sure to go up. K quickly calculated the change in income and the new income level to be:1. Complete the accompanying table with disposable income (DI) and consumption (C) schedules for a private, closed economy. All figures are in billions of dollars. DI Consumption Saving АРС APS MPC MPS 8. 40 40 80 72 120 104 160 136 200 168 240 200 (a) Refer to the above data. If plotted on a graph, the slope of the consumption schedule would be: (b) The break-even level of income is ($ ) where saving equals ( $ :). Households dissave ( $ ). Dissaving occurs at the lowest levels of income as households spend ( more, less ) than they receive in disposable income. This dissaving could occur with households liquidating (selling for cash) their assets or borrowing money. As income rises we see that savings ( increases, decreases ) by a greater and greater amount. (c) If consumption increases by $10 billion at each level of disposable income, the average propensity to consume (APC) will ( change, unchange) and/but the marginal propensity to consume (MPC)will ( change, not change). (d) (APC,…