The equilibrium level of real GDP isReal GDP Consumption(Y)(C)$8,000$6,2009,00010,00011,00012,0006,8507,5008,1508,800Planned. Gov't NetInvestment Purchases Exports AggregatePlanned(1)$1,675(G) (NX)$1,675 -$500Expenditure$9,0501,6751,675 -$5009,7001,6751,675 -$5001,675-$5001,675-$5001,6751,67510,35011,00011,650UnplannedChange inInventories$-1,050-700-350350

Aggregate expenditure is the sum of consumption, investment, government expenditure and net exports…

F The equilibrium level of real GDP is Real GDP Consumption (C) $6,200 (Y) $8,000 9,000 10,000 11,000 12,000 6,850 7,500 8,150 8,800 Planned. Gov't Net Planned Investment Purchases Exports Aggregate (1) (G) (NX) -$500 Expenditure $9.050 $1,675 $1,675 1,675 1,675 1.675 1,675 1,675 1,675 1,675 -$500 1,675 -$500 -$500 9,700 -$500 10,350 11,000 11,650 Unplanned Change in Inventories $-1.050 -700 -350 350

F The equilibrium level of real GDP is Real GDP Consumption (C) $6,200 (Y) $8,000 9,000 10,000 11,000 12,000 6,850 7,500 8,150 8,800 Planned. Gov't Net Planned Investment Purchases Exports Aggregate (1) (G) (NX) -$500 Expenditure $9.050 $1,675 $1,675 1,675 1,675 1.675 1,675 1,675 1,675 1,675 -$500 1,675 -$500 -$500 9,700 -$500 10,350 11,000 11,650 Unplanned Change in Inventories $-1.050 -700 -350 350

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(c) The following table is the information of the real GDP and all the expenditures (the numbers are in billions) for Country XYZ. Planned Government Real GDP (S) Consumption ($) Net Exports ($) Investment ($) 350 Purchases ($) 450 4000 3500 -100 5000 4300 350 450 -100 6000 5100 350 450 -100 7000 5900 350 450 -100 (i) What is the equilibrium level of real GDP? (ii) If potential GDP is $7000 billion, is the economy at full employment? If not, what is the condition of the economy? If the economy is not at full employment, by how much should government spending increase so that the economy can move to the full employment level of GDP?
e 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 billon
3) The value for net exports in billions of dollars is A) -200. B)-150 C) 50. D) 250. 4) The value for gross domestic product in billions of dollars is A) 2,900. B) 3140 C) 3,440. D) 3,650.
Billions of Dollars 6,500 1,900 1,200 Consumption Gross private domestic investment Government spending less transfer payments Imports Exports Depredation Indirect business taxes and transfers 600 500 1,500 750 17) Using the above table, the GDP is (in billions of dollars) A) 10,200. B) 8,200. C) 8,900. D) 9,500.
(o) Calculate MPC, MPS and APC from the following data: Income (Y) Consumption 100 95 110 104
Problem 1. Calculate APC, MPC, MPS and APS from the following data: Income (Y) Consumption (C) (8) 1000 900 1200 1060
Government Consumption expenditure (dollars) Investment Real GDP expenditure (dollars) (dollars) (dollars) 500 500 2,500 3,000 500 500 3,250 4,000 5,000 500 500 4,000 500 500 4,750 6,000 500 500 5,500 7,000 500 500 6,250 8,000 In the above table, there are no taxes and no imports or exports. The change in unplanned inventories when real GDP is $7,000 is اختر أحد الخيارات $500 a O $500- b O $6.500 .cO $1,500 d O
ADVANCED ANALYSIS Linear equations for the consumption and saving schedules take the general form C= a+ bY and S=-a+ (1- b) Y, where C, S, and Yare consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule. a. Use the following data to substitute specific numerical values for a and b in the consumption and saving equations. National Income (Y) Consumption (C) $ 70 100 140 210 200 300 280 350 480 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers: b. What is the economic meaning of b? MPC What is the economic meaning of (1- 6)?
Problem 2. Complete the following table: Income (Y) Consumption (C) АРС MPS (7) 2,000 1,900 3,000 2,700
What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?
Given the following income data, please answer the questions below: Real GDPConsumption IgGovernmentExportsImports$ 80000$120000$7000 $18000$6000$11000$160000$180000$7000 $18000$6000$ 11000$240000$240000$7000 $18000$6000$11000$320000$300000$7000 $18000$6000$11000$400000$360000$ 7000 $18000$6000$11000 a. Solve for net exports in each row.b. Solve for aggregate expenditures (AE) in each row.c . State the value for the equilibrium GDP. d. If imports were to increase by $40000 so they are now equal to $51000. solve for net exports again.e. With this new export value, solve for aggregate expenditures in each row.f. State the value for the new equilibrium GDP.g. Solve for the multiplier (you can solve for either the actual or simple multiplier).
(a) Suppose the price level in an economy rises while the money wage rate remains constant. What happens to the quantity of real GDP supplied. How will this affect the aggregate supply or aggregate demand curve? What if the potential GDP increases? Which aggregate curve is affected and how? (b) Real GDP Consumption Planned Investment Government Purchases Net Exports $1,000 $1,000 $100 $150 -$50 2,000 1,900 100 150 -50 3,000 2,800 100 150 -50 4,000 3,700 100 150 -50 From the table data provided, answer the following questions. The numbers in the table are in billions of dollars. Show all calculations. a. What is the equilibrium level of real GDP? b. What is the Marginal Propensity to Consume? c. What is the multiplier value in this economy? d. If potential GDP is $4,000 billion, is the economy at full employment? If not, what is the condition of the economy? e. If the economy is not at full employment, by how much should government spending…