From the information below calculate aggregate demand; Consumption (C) = $200 + 0.6Y Investment (I) = $300 Government (G) = $100 Net Export (NX) = $50 What is the value of the marginal propensity to save?
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From the information below calculate aggregate demand;
- Consumption (C) = $200 + 0.6Y
- Investment (I) = $300
- Government (G) = $100
- Net Export (NX) = $50
What is the value of the marginal propensity to save?
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- The table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. Real GDP, Y (billions of 2012 dollars) Consumption expenditure, C (billions of 2012 dollars) Investment, I (billions of 2012 dollars) Government expenditure, G (billions of 2012 dollars) 15 6 5 5 20 10 5 5 25 14 5 5 30 18 5 5 35 22 5 5 The marginal propensity to consume in Syldavia is equal to A. 0.40. B. 5.00. C. 0.80. D. 0.75. E. 0.20.Answer the following questions based on the below graph AE 5000 2000 45 5000 TP Investment I: $400 Government G: $300 AE Taxes T: Net Export NX: $0 $100 a- Graphically determine the equilibrium level of output. b- Derive the consumption and saving functions. c- Mathematically solve for the equilibrium level of income. d- When the economy is at full employment the output level is $5500. How much would government purchases change to create full employment?Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save. Fill in the blanks in the following table. Show that the MPC plus the MPS equals 1. National Income & Real GDP (Y) Consumption (C) Saving (S) MPC MPS $9,000 $8,000 $10,000 $8,600 $11,000 $9,200 $12,000 $9,800 $13,000 $10,400
- Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet Aggregate of Investment purchases Exports (G) (C) Expenditure (AE) (1) (NX) 650 85 195 90 320 690 750 145 195 90 320 750 850 205 195 90 320 810 950 265 195 90 320 870 Find the value of the multiplier in this economy? Show your calculations. Answer: Give your reasons A- в I Fr of IIWhich of the following would be most likely to increase consumption spending? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A reduction in consumer credit card debt b A drop in stock prices A higher interest rate d The expectation of lower future pricesWhat are the four categories of aggregate expenditure (demand)? Give an example of each. 9.1 Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save. Fill in the blanks in the following table. Show that the MPC plus the MPS equals 1. National Income & Real GDP (Y) Consumption (C) Saving (S) MPC MPS $9,000 $8,000 $10,000 $8,600 $11,000 $9,200 $12,000 $9,800 $13,000 $10,400
- You Suppose the government increases education spending by $20 billion. If the marginal propensity to consume is 0.75, how much will total spending increase? Instructions: Round your response to one decimal place. $ billionWhich of the following would be most likely to increase consumption spending? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a A reduction in consumer credit card debt b A drop in stock prices c A higher interest rate d The expectation of lower future pricesIn 2009, the US Federal government cut taxes by approximately $300 billion, increased government spending by approximately $300 billion, and increased transfer payments by approximately $200 billion. Answer the following questions, assuming the marginal propensity to consume was 0.75. What was the maximum change in GDP from the government spending? Show your work.
- Governments attempt to stimulate economies by offering firms temporary investment tax credits. Explain the effects of this measure on investment spending. Would you expect a permanent or temporary measure to have more effect.10. T/F/U. Fear of a recession causes a decrease in investment spending—I— which in turn impacts v. Draw a graph consistent with your answer.CONSUMPTION (Billions of dollars) ng.cengage.com Lesson 6 Discussion Forum ART-1035-U01 - Introduction to Art Mind Tap - Cengage Learning CENGAGE MINDTAP Q Search this course Aplia Homework: Aggregate Expenditure and Aggregate Demand Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increases by $1, consumption increases by 50¢. Suppose further that last year disposable income in the economy was $350 billion and consumption was $300 billion. Z-V On the following graph, use the blue line (circle symbol) to plot this economy's consumption function based on these data. E 009 oSuog DISPOSABLE INCOME (Billions of dollars) billion and the marginalbropensity to save in this From the preceding data, you know that the level of saving in the economy last year was economy is M-cBook Al IN F8 F12 F11 F6 888 dele %23 24 8. 6. 9. 7. 3. 4. P. R. H.
