Given the following data on a simple closed economy: C= 10 +0.75 Y I = 20 G = 40 where C is aggregate consumption, Y is national income, G is government expenditure on goods and services, and I is investment expenditure.
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- 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?Q3 In a simple macroeconomic model, the value of national income Y may be found by solving the system: G= 250 (government expenditure) T= 50 (taxation) I= 100 (planned investment) C = 0.75Yd + 150 (consumption) where disposable income Yd = Y – T. (a) Calculate the equilibrium level of national income. (b) Calculate the total increase in government expenditure and investment needed to increase the equilibrium level of national income by 20.Assume that, without taxes, the consumption schedule of an economy is as follows. Consumption, GDP, Billions Billions $ 100 $ 120 200 200 300 280 400 360 500 440 600 520 700 600 a. Graph this consumption schedule. Instructions: Use the tool provided 'CE' to plot the consumption schedule point by point (plot 7 points total). Consumption Expenditure 800 Tools 700 600 CE 500 400 300 200 100 45° 100 200 300 400 500 600 700 800 Real domestic product, GDP (billions of dollars) Consumption (billions of dollars)
- The gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment will increase its GDP to $4.5trillion in year 2? (present your result in the nearest billion dollars, i.e., no decimal places) Assume that the average disposable income and consumption (in real $) of this country's citizen are provided in the table below. Year Income Consumption 1 60,000 50,000 64,726 51,259Q.30. C = 100 + 0.4 Y is the Consumption Function of an economy where C is Consumption Expenditure and Y is National Income. Investment expenditure föfeign exchange etc. financing, is 1100. Calculate: () Equilibrium level of National Income.1.If the real GDP is 1000 and Investment is 150, Government Spending is 250 and Net Exports equals -100, then Consumption must be?
- The following are a year's data for a hypothetical economy. Comsmption $400B, Government purchases $350B, GDPI $150B, Exports $150B, Imports $100B, Depreciation $50B. a) what is the value of GDP and NDP? b) what is the value of Net private Domestic investment ? c) suppose that in the next year exports increases to $175B, imports increase to 200B, and consumption falls to 350B. What will GDP be in that year?d. What is the value of the multiplier? e. If planned investment spending falls to $200 billion, what will be the new Y*? f. If autonomous consumer spending rises to $200 bil- lion, what will be the new Y*?Refer to the graph for a private closed economy. If the consumption schedule shifts up by $50 B at all levels of income or output, then the equilibrium GDP will increase to: Select one: a. $550 B b. $300 B c. $600 B d. $150 B
- Assume that in country ABC: Consumption expenditure C = 70Gross Investment expenditure IG = 20Government expenditure on goods & services G = 10Exports X = 15Imports Z = 10How much is its GDP?please kindly assist with the following Which of the following represent injections into the circular flow of income and spending?(a) Exports and investment;(b) Government spending and imports;(c) Government spending and saving; (d) Imports and saving. In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms;(b) Firms purchase goods from government;(c) Firms purchase goods from households;(d) The government purchases goods from households. Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a:(a) unit of account.(b) store of value.(c) medium of exchange.(d) standard of deferred payment. The ________ demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of ________.(a) precautionary; interest rates (b) transactions; national income (c) speculative; interest…The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers (gray-shaded cells) in the table. Instructions: In the table, enter your answers for consumption as a whole number. Round your answers for APC and APS to 3 decimal places. Round your answers for MPC and MPS to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Level of Output and Income (GDP = DI) Consumption Saving АРС APS MPC MPS $480 $-16 520 560 16 600 32 640 48 680 64 720 80 760 96 800 112 Instructions: Enter your answer as a whole number. b. What is the break-even level of income in the table? 2$ What is the term that economists use for the saving situation shown at the $480 level of income? |(Click to select) V c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes: The MPS: (Click to select) V The APC: (Click to select) V The MPC: (Click to…