Explain the relationship between output and income for both an individual and an entire economy.

Q: Classify each of the following items as a final good or service or an intermediate good or service…

A: The gross domestic product(GDP) refers to the market value of all the final commodities produced…

Q: Here is what we know about a household: wages $25,000, unemployment insurance benefits $3,000,…

A: The expenditure way to deal with computing GDP (GDP) considers the amount of every last great and…

Q: Provide an interpretation for how consumption is related to income in the following: consumption =…

A: Marginal propensity to consume is the proportion of the disposable income that a person wants to…

Q: How do budget surpluses and budget deficits affect the consumption and investment components of GDP

A: The budget surplus is a situation where the revenue of government exceeds the spending of the…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: According to the expenditure approach of calculating national income,  Y= C+I+G+NX C is the domestic…

Q: Which one of the following statements about consumption spending is incorrect? А. Spending on…

A: Consumption Spending is one of the most important component of Gross Domestic Product. Consumption…

Q: Consider the circular flow of expenditure and income in the Canadian economy. Which of the following…

A: The circular flow of income and expenditure basically refers to the mechanism through which an…

Q: Clearly explain the characteristics of the consumption function.

A: Consumption Function is defined as C=c¯+bY where  c¯ is autonomous consumptionb is marginal…

Q: consider the following hypothetical economy. Consumption makes of 60% of national income,…

A: Given consumption is 60% of national income implies that C=0.6Y, where C is consumption and Y is…

Q: If households spend $80 billion on goods and $70 billion on services, how much in revenues do…

A: There are two types of market: Product market and Money market. The product market is also called…

Q: ECONOMICS In an economy the consumption function is C=500+0.75 Y, where C is consumption expenditure…

A: Equilibrium level of income  means when aggregate demand is equals to aggregate supply (AD=AS) and…

Q: What is usually the smallest component of spending in GDP in Australia?   A) Consumption spending…

A: GDP( Gross Domestic Product)  GDP refers to the production level of an economy of a nation during a…

Q: Classify each of the following items as a final good or service or an intermediate good or​ service,…

A: A. A textbook bought by a student is a final good that is consumption expenditure. Consumption goods…

Q: Explain why an economy’s income must equal itsexpenditure

A: The economy refers to the region where the consumption, production and allocation of goods and…

Q: Explain why an economy’s output, in essence, is also its income.

A: ANS In an economy, all the goods that are produced are sold. Also, it should be noted that whatever…

Q: What is the level of private consumption in GDP is 10,000, investment is 2,900, government spending…

A: The GDP is the value of all the final goods and services that are produced in an economy in a given…

Q: Explain why an economy's income must equal its expenditure.

A: The total expenditure refers to the total amount of money spent by the firm, individual or…

Q: How increasing housing prices in the US to its highest historical levels affect the US economy and…

A: GDP or Gross Domestic Product refers to the final value associated with all the goods and services…

Q: Calculate the equilibrium real GDP for the economy   2. What is the level of consumption at the…

A: " Since this question has multiple parts, we will answer only first three parts for you. If you have…

Q: 72. Which of the following expenditures would increase the consumption component of GDP?

A: Under the expenditure approach, GDP is equal to the total amount of money spent on personal…

Q: The change in consumption is $300 and change in income is $1000 Find the value of MPC

A: The marginal propensity to consume (MPC) measures the proportion of a unit of the consumer's income…

Q: Is the purchase of equipment or machinery a part of consumption or investment? Why?

A: The concept of allocation of money with having an expectation in the future of a positive return or…

Q: The figure shows the flows of expenditure and income on Lotus Island. In 2016, R was $7 billion; W…

A: We know that, Total Expenditure- C+I+G+NX Here, C= W, I= J, G=U and NX= Z So, Total Expenditure = W…

Q: Data for output (real income) and savings are presented in the table below. a. Fill in the missing…

A: Formula to calculate:- a) APC=CYb) APS=SYc) MPC=∆C∆Yd) MPS=∆S∆Y

Q: From the given data calculate the investment expenditure 1) Equilibrium level of income = 5000 2)…

A:

Q: Calculate the value of change in consumption if change in income is $2200 and MPC is 0.34

A: (Q) Calculate the value of change in consumption if a change in income is $2200 and MPC is 0.34

Q: What are the two approaches to determine the equilibrium level of income in an economy?

A: According to the given question In simple words we can say that equilibrium level income is…

Q: uestion 1: In an economy C = 350 + 0.75 Y is the consumption function where C is consumption…

A: We measure the output of an economy using the gross domestic product. GDP or the gross domestic…

Q: Assume the economy experiences an increase in non-market transactions and a decrease in market…

A: Non-market transactions is an economic transaction or activity that happens in the informal area…

Q: explain how total output and total income are related to each other, and why they are related

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Calculate the expected change in GDP if the federal government announces it will spend an additional…

A: Change in the government expenditure=$80 million Marginal propensity to consume(MPC)=0.6 Change in…

Q: expenditure at equilibrium level of national income. (1) C = 200 + 0.5 Y is the consumption…

A: The equilibrium level of the national income refers that when  the aggregate supply and the…

Q: Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors to other…

A: GDP measures the value of goods and services produced within the country during a specific period of…

Q: The Consumption at zero level of income is called

A: # We must know that even when the consumers have zero disposable income, at such point also some…

Q: Consumption Function) How would an increase in each of the following affect the consumption…

A: The consumption function refers to the standard equation of consumption that indicates the…

Q: Suppose that the economy has consumption $90, investment $50, government purchases $30, imports $20,…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: 0.30. C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure…

A: # The sum of consumption and Savings is equal to the equilibrium level of national income.  AD or Y…

Q: what do you mean by CIRCULAR FLOW OF GOODS AND INCOME AMONG PRODUCERS AND HOUSEHOLDS

A: circular flow model  Lets understand this concept with an example:- In this circular flow model…

Q: Identify the part of the personal income which is actually available for consumption a. Taxable…

A: Personal income: It means the total earnings of an individual.

Q: with the aid of a diagram, explain the income and expenditure model

A: The income and expenditure model is a Keynesian cross model that shows the equilibrium condition of…

Q: Calculate the equilibrium level of output (income) for the following economy: Consumption C =…

A: Given: Consumption C = 1500+0.75Y         Investment I = 500    Generally, equilibrium level of…

Q: what is the output approach, the income approach, and the expenditure approach to measuring national…

A: The income, expenditure and the output approaches are used to measure national income.

Q: When the Japanese car maker Toyota expands one of its car factories in the United States, What is…

A: The economies around the world work, or operate with the motive of increasing their production, as…

Q: a) Complete the table below considering that the GDP of Ireland (at 2005 market prices) grew from 79…

A: Note: We will answer the first question as the exact one was not specified. Please resubmit a new…