Disposable income Lütfen birini seçin: O A. decreases when income decreases O B. is always fixed. O C. all of the answers O D. increases when saving decreases O E. decreases when net taxes decrease
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Q: Assume that in 2016 the folowing prevals in the Republic of Nurd Govemment spending (G)= 50 Net…
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- Assume that in 2016, the followng prevals n the Republic of Nurd Goverment spending (0) 50 Not taxos (T)- 50 Planned investment - S30 Assume that househoids in Nurd censume 75 percent of heir income, they save 25 percent of their income. Thun, the consumption function and saving function of Nurd re C-075Y, and S=025Y. where disposabile income YY-T Determine the equilitrium level of income Equilibrium income =$(Enter your reaponse as an integer.)Suppose a given hypothetical economy has the following values. GDP-520 Billion, Consumption =$13 Billion; Govermment Purchase-$4 Billion; and Budget Surplus = $1 Billion How much is the public saving? OA S5 Bilion OB $4 Blion OC.52 Billion OD-$1 Billion OE S1 Billion OF $3 BillionAssume in a simple economy that thc level of saving is -500 when aggregate ourput equals zero and that the margina! propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these func- tions. At what level of aggregate ouiput does the consumption curve cruss the 45° line? Explain your answer and show this un the graph.
- Co If the consumption function is of the form [C= 80 + 0.4 Y, the MPS equals Lütfen birini seçin. O A. 80 O B. -0.4. O C. 0.6. O D.04 O E.-0.6. Refer to the information provided in Table 22.4 below to answer the quesi2. is it possible for total saving to fall when people beome more thirfty?40. If the expenditure mutiplier in a closed economy without govemment activites equais 4 what is the MPC in ths economy? a. 025 b. 0.20 C. 0.75 d. 0.80 Use the information below to answer questions 41-43. In an economy at zero disposable income consumption is 1200 milion. The marginal propensity to save in this economy is 0.25 41. What is the consumption function for this economy? a. C 1200 0.25Yd b. C 1200 0.75YA C C-0+0.75Yd d. C=-1200 25Yda 42.If Yd = 6000 milion, what is consumption expenditure in this economy? a. 6000 million b. 5700 million e. 7200 millon d. 5200 million 43. What is saving in this economy at Yd= 6000 milion? a -1200 b. 300 C. 1200 d. 300 44. An increase in minimum wages unmatched by high productivity leads to a. demand pull inflation b. cost push inflation e. imported inflation d. creeping infation 45 Full employment occurs when a. actual output exceeds potential output b. actual output is less than potential output C. actual output is equal to potential output…
- a ssume HPC =0.80 and that taxes are at by64billion goverment purchases are increused by $4billion Accord ing to keynesian analy sis (fiscal policy) How mich will ŘGDPchang e? will it increase or deciease?Real Disp. Consmp. Income Spending Saving Invst Plnd Plnd Govt Net Plnd Exp. Export Exp. 10.8 GDP Tax 10 6.8 1.2 1.5 2 0.5 11 7.6 1.4 1.5 0.5 11.6 12 10 8.4 1.6 1.5 2 0.5 12.4 13 2 11 9.2 1.8 1.5 2 0.5 13.2 14 12 10.0 2.0 1.5 0.5 14.0 15 13 10.8 2.2 1.5 0.5 148 16 14 11.6 2.4 1.5 2 0.5 15.6 Note: Amounts in billions. Refer to the above table. The equilibrium real GDP is $15 billion. $14 billion. $13 billion. $12 billion.Gross Real GDP (after taxes) Investment $10 10 ITTIT 20 10 10 10 10 10 10 40 70 100 130 160 Consumption $-20 100 K Net exports +5 45 Government purchaies $15 7. Refer to the above table. If the full-employment real GDP is $70 the 15 15 15 15 15 15 OA) A. inflationary expenditure gap is $30. OB) B. recessionary and inflationary expenditure gaps are both $0. OC) C. inflationary expenditure gap is $10. OD) D. recessionary expenditure gap is $10.
- 1. Use a saving-investment diagram to explain what hap- pens to saving, investment, and the real interest rate in each of the following scenarios in a closed economy. ek ja. Current output rises due to a temporary produc- tivity increase. V b. The tax code changes so that business firms face ehigher tax rates on their revenue (offset by other eb on lump-sum tax changes so there's no overall change in tax revenue).4. Suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 tríllion. Assuming this econ- omy is closed, calculate consumption, government purchases, na- tional saving, and investment.Consider the impact of a cut in the interest rate set by the central bank (the "policy rate"), which causes banks to lower interest rates for both borrowers and lenders. Select one or more: U a. Borrowers like Julia will definitely be better off O b. Borrowers like Julia will definitely increase their current consumption O c. If Marco is a saver (not an investor) he will definitely be worse off O d. If Marco is a saver he will definitely decrease his consumption
