Refer to the figure at right. The equilibrium level of real GDP will occur A. at point A. B. to the left of point A. C. to the right of point A. D. at the undetermined point on the graph depending upon the level of investment.
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- if Government Spending (G) is $200 million, Tax Revenue (T) is $260 millio Consumption is $300 million, and GDP P(Y) is 780 millionPrivate saving ise 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 billonWhich COMPONENTS (IF ANY) of U.S. GDP (consumption C, investment I, government spending G, and/or net exports NX) THIS YEAR would be affected and HOW (INCREASE OR DECREASE) if: (a) you buy an OLD house in Coral Gables and start living in it (b) Jackson Memorial Hospital buys a new MRI scanner produced in Germany (c) Whirlpool produces some kitchen appliances but does not manage to sell them this year (d) you cook yourself a dinner (ignore the cost of all ingredients and the increase in your utility bill)
- 1) Personal consumption expenditures in billions of dollars are A) 900. B) 1,100. C)1400 D) 1,600. 2) The value for gross private domestic investment in billions of dollars is A) 740. B) 810. C) 850. D)890The following transactions took place in Ecoland in 2018: Trillions of 2014 dollars Government purchases 400 Taxes 360 Firms’ profits 300 Investment 400 Consumption expenditure 1000 Wages paid to labor 1400 Exports 300 Government transfer payments 150 Imports 350 (a). Calculate Ecoland’s real GDP in 2018, i.e., GDP measured in 2014 $. (b) How much do households save in Ecoland? Is it enough to finance domestic investment? (c) Does the government have a balanced budget? If not, what is the surplus or deficit? (d) If Ecoland’s nominal GDP in 2018 is $1900 trillion, how much inflation has Ecoland experienced since 2014?Personal consumption expenditures in billions of dollars are
- TOTAL EXPENDITURE (Billions of dollars) 500 475 450 425 400 375 350 325 300 H 300 425 REAL GDP (Billions of dollars) 325 350 375 400 If Real GDP is $425 billion, inventories 450 475 I 500 (TP = Real GDP) TE the firms production, and Real GDPUse the information in the table to answer the following questions. All numbers are in billions of 2012 dollars Planned Government Net Exports Real GDP (Y) Consumption (c) Investment (I) Purchases (G) (NX) $5,000 $4,500 $500 $700 - $500 S6,000 $5,300 $500 $700 - $500 S7,000 $6,100 S500 $700 - $500 $8,000 $6,900 $500 $700 - $500 S9,000 $7,700 S500 $700 - $500 The equilibrium level GDP is $ billion. The MPC is (enter your response to two decimal places). Suppose that net exports increase by $400 billion. Using the multiplier formula, determine the new level of GDP. A $400 billion increase in net exports leads to a change in spending of $ billion, so the new level of GDP will be $ billion.Problem 1. Calculate APC, MPC, MPS and APS from the following data: Income (Y) Consumption (C) (8) 1000 900 1200 1060
- In an economy, income raise by $5000 to $6000 million as a result of 20% rise in investment Calculate the value of investment multiplierExpected Rate of net profits 15% Investment GDP Consumption $100 160 $100 12. 40 200 80 300 220 120 400 280 13 160 500 340 200 600 400 Refer to the above data. If gross Investment Is $120, the equilibrlum level of GDP will be Multiple Cholce S370 3400Problem 3 Given the below data Disposable Income Consumption expenditure (dollars) 0. 100 100 180 200 260 300 340 400 420 500 500