Connect Problem 13-11 An economy is described as follows: C = 400+ 0.6 (Y - T) IP = 200- G= 200 NX = 60 T= 100 Y* = 2,100 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. Instructions: Enter your responses as absolute values
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- For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 550 + 0.75 (Y – T ) I p = 200 G = 200 NX = 60 T = 180 Y* = 3,400 Instructions: Enter your responses as absolute numbers. Autonomous expenditure: Multiplier: Short-run equilibrium output: There is (Click to select) an expansionary no a recessionary output gap in the amount of .Autonomous expenditure would need to (Click to select) increase decrease stay the same by to eliminate the output gap.For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap. By how much would autonomous expenditure have to change to eliminate the output gap? C = 2,500 + 0.75 (Y – T ) I p = 1,500 G = 2,000 NX = 300 T = 1,500 Y* = 19,900 Instructions: Enter your responses as whole numbers. Autonomous expenditure: 5175Multiplier: 4Short-run equilibrium output: 20,700Output gap: (DO THIS PART)Autonomous expenditure would need to (Click to select) decrease increase by ____________to eliminate the output gap. (DO THIS PARTAn economy is described as follows: C = 400 + 0.6(Y – T) I p = 200 G = 200 NX = 60 T = 100 Y* = 2,100 a. For the economy described above, find autonomous expenditure, the multiplier, short-run equilibrium output, and the output gap.Instructions: Enter your responses as absolute values.Autonomous expenditure: 800 correct.Multiplier: 2.5 correct.Short-run equilibrium output: 2000 correct.There is a recessionary output gap in the amount of 100 correct.. SOLVE PART (b)b. Illustrate this economy’s short-run equilibrium on a Keynesian cross diagram.Instructions: On the graph below, use the line tool 'PAE' to draw the aggregate expenditure line using the points at Y = 1,500 and Y = 2,500 only. Then use the point tool 'Short-term eq.' to identify the equilibrium level of income and expenditure.
- Assume the economy is initially in goods market equilibrium with all variables at their expected levels. Considering only the short run implications for the economy, which of the following statements are true: a) Following a cut in the proportional tax rate, national income rises and the budget balance improves. b) If the multiplier estimated by researchers from the data is less than one, then following a rise in government spending, output is lower in the new equilibrium. + c) Following a rise in households' target wealth, both consumption and output are lower in the new equilibrium. ÷ 수Suppose the United States economy is represented by the following equations: Z = C + I + G C = 500 + .5YD T = 600 I = 300 YD = Y - T G = 2000 a. Given the above variables, calculate the equilibrium level of output. b. Now, assume that taxes increase from 600 to 700. What is the new equilibrium level of output? How much does income change as a result of this event? What is the multiplier for this economy?For the following economy, find autonomous expenditure, the multiplier, short-run equilibrium output,and the output gap. By how much would autonomous expenditure have to change to eliminate theoutput gap? C= 2,500 + 0.75 (Y – T ) I p= 2,000 G= 3,000 NX= 100 T= 2,500 Y*= 22,500 Calculate the multiplier in the economy?
- 1) Determine the value of the multiplier for this economy, and find the equilibrium value of Y.Based on the following information: C = 40 + 0.7Yd, T = Tg – R, I = 200, G = 350, Tg = 60, R = 40 calculate the equilibrium level of income (Ye). calculate the value of kG, kTg and kR, where k is the multiplier.. calculate the values of C, S and T at Ye level. calculate the new equilibrium level of income if I increases by 10 percent. if G increases to 550 units and it is fully funded by the rise in T, what is the impact on Ye? if Tg increases to 85 units and R increases to 50 units, what is the effect on the level of Ye? Given the following information. C = 600 + 0.8Yd , Yd = Y – T, Tg = 100, I= 200, R = 50, G = 350, X = 250 and M = 200 + 0.1Y. Calculate the equilibrium level of income (Ye). Show the equilibrium level of income by using diagrams of both aggregate expenditure-income (AE-Y) approach and injection-leakage approach, How much investment should be increased if the government wants to increase the national income by 2000? How much tax has to be reduced so that…Question 2 Refer to the information provided in Figure 23.9 below to answer the question(s) that follow. Aggregate expenditures ($ millions) 225 200 175 150 45° AE 100 200 300 Aggregate output ($ millions) Figure 23.9 a) Refer to Figure 23.9. Write the equation for the aggregate expenditure function (AE). Show your work. b) Refer to Figure 23.9. What is the equilibrium level of output in this economy? State the equilibrium condition used to determine this. c) Explain the forces that maintain/drive the economy to this equilibrium by considering what will happen at the following two levels of output, $300 million and $100 million. You will need to discuss changes in investment through unplanned inventories and the response of output. d) Refer to Figure 23.9. How will equilibrium aggregate expenditure and equilibrium aggregate output change as a result of a decrease in investment by $20 million? e)The interest rate is an exogenous factor that effects the level of investment in an economy.…
- equilibrium is important in the simple expenditure model so we need to know the following: what is the signal or indicator in the economy that will tell us we are not in equilibrium? What value for that signal will assure us we are in equilibrium? Explain why. ( Please solve whole question ASAP . I will definitely Rate your answer )For the following economy, find autonomous expenditure, the multiplier, short-runequilibrium output,and the output gap. By how much would autonomousexpenditure have to change to eliminate the output gap?C= 400 + 0.8 (Y – T )I p= 200G= 140NX= 60T= 100Y*= 4,000Find the multiplier, output gap and change in autonomous expenditure toeliminate the output gap.C= 500 + 0,8Y, tax rate(t)= 0,25, G=1000 ve I= 1200. X= 500, M= 500 + 0,1Y Calculate the equilibrium level of output. Calculate the budget balance at equilibrium level of Y. Calculate the trade balance at equilibrium level of Y. Calculate the multiplier for I(investment).