Answered: 1. The Following equations describe an…

1. The Following equations describe an economy: Y=C+I+G C = 240 +0.5(Y-T) I = 200-10r G = 100 T = 80 (M/P)d=Y-20r M = 1200 P = 4 What are the Equilibrium level of income and the real intere

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Answer the next questions on the basis of the following information about a two sector economy: Item…

A: Since you have posted multiple similar Ques, as per the policy I have solved the first three for…

Q: 1. The economy's income and expenditure The following diagram presents a circular-flow model of a…

A: The circular flow model shows how the money in the economy circulates from households to firms.…

Q: How do i trace this scenario on the circlar flow model, firms inventories unexpectedely rise?

A: We see a two-sector circular flow diagram with households and business firms. In this model…

Q: "Assume an economy described by the following equations: Y=C+I+G, G = 1000, T = 1000, C = 500+…

Q: Suppose we have the following annual information about a wine producer of Shiraz: wages $300,000,…

A: Value added is a measure of economic contribution that a business or producer makes to a product…

Q: Refer to the figure, which of the following pairs correctly identify W and Y? a. Markets for…

A: The figure given to us is representing circular flow model which state that it is a income…

Q: Consider a model of a goods market in a closed economy that is characterized by the following…

A: In a closed economy, aggregate expenditure is the sum of consumption, investment, and government…

Q: In a simple model of the supply and demand for pizza, when aggregate income increases, the price of…

A: Demand refers to the consumer's desire to buy any commodity or service. There exists a negative…

Q: What is the value added on every stage of production? b) What is the GDP using the „value-added“…

A: In this problem, we would understand the concept and calculator the value added at each stage and…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: Given, Consumption (C)=70 billionInvestment (I)=6 billionGovernment expenditure (G)=7 billionImports…

Q: Consider the following economy C=1000+0.4(Y-T) 1=500 T=400 G=300 What is the income of equilibrium?

A: Given: C=1000+0.4(Y-T) I=500 T=400 G=300 To find: Income of equilibrium

Q: If there is an increase in savings in an economy and a decrease in national income, what is the…

A: In the Keynesian sense, the correct response to the economic downturn is overuse, risk, and limited…

Q: Given the following macroeconomic information to answer the next question: Private Consumption…

A: Gross domestic product (GDP) measures the monetary worth of all finished goods and services…

Q: What is the equilibrium level of output (Y) in this economy? Planned Government Net Exports…

A: In the Keynesian model, also called expenditure-output model, demand plays a significant role in…

Q: 1.12 Study the following diagram and answer the question that follows. Expenditures (billions of…

A: Consumption function is consists of autonomous consumption and consumption dependent on Income. C =…

Q: The table below gives date about the economy of countryX, answer the question below given the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 5. Find the equilibrium output for the following economy C = 120 + 0.5(Y – T); I = 250 – 10r; G =…

A: Answer: To find the equilibrium output for this economy we have to equate the IS-curve and LM-curve…

Q: 5. Consider the following is the economy of Country Z: C = 200 + 0.85Y 1= 100 Answer the following…

A: Answer a) Given;C = 200 + 0.85YI = 100Where;'C' is the consumption function'I' is the investment…

Q: quantity of labor employed and the equilibrium real wage rate? Real wage rate (2012 dollars per…

A: Labor market equilibrium occurs where the quantity of labor supplied is equal to the quantity of…

Q: If you were studying the following relationship, which variable would be exogenous and which would…

A: Endogenous variables are those variables whose values are determined in the model. It is also called…

Q: Consider an economy that produces and consumes bread and automobiles. In the following table are…

A: To calculate Price between 2000 to 2010 we required to calculate GDP Deflator and it is calculated…

Q: Given the macro economic data below, draw a graph to illustrate if there is arecessionary gap in the…

A: a.)Recessionary gap:Equilibrium GDP can be calculated as follows:

Q: Consider the following economy C=1000+0.4(Y-T) 1=500 T=400 G=300 What is the investment of…

A: Equilibrium is the state in which market supply and demand balance each other, and as a result…

Q: The most important practice you can do to learn the material in this chapter is to think through the…

A: GDP (Gross Domestic Product) is the most often used indicator of economic activity. The gross…

Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…

A: In Market for Goods and Services, firms sell goods and services and household purchase those goods…

Q: Use the following information to answer questions 14 and 15. Consider the following transactions in…

A: Since the question you have posted consists of multiple parts, we will answer the first question for…

Q: what is ? 1-)Expenditure Approach 2-)Income Approach 3-)Production Approach

A: Answer - Expenditure Approach - Expenditure is a method used for calculating "GDP" . By, taking…

Q: 17. Consider the following macroeconomic mode Time C= 200 + 0.8Y GI (Gross Investment)= 200 GP…

A: In an economy, the macroeconomic equilibrium is established at a level of real GDP where the…

Q: 25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20,…

A: C = 0.4Yd + 20 National Income (Y) = 1000 Government Expenditure (G) = 200 Tax (T) = 50

Q: 13. The circular-filow model The following diagram presents a circular-flow model of a simple…

A: The above diagram shows circular flow of money and goods and services between firms and households.

Q: EOC 8.6 Homework Unanswered Due Jan 31st, 9:00 PM From the following data, determine the equilibrium…

A: Real GDP or real gross domestic product is one type of calculation which is actually adjusting the…

Q: Differentiate between an induced increase in consumption and in autonomous increase in consumption…

A: Autonomous consumption is the level of consumption without income. On the other hand, Induced…

Q: Given the following set of equations for an economy model: Consumption expenditure Investment C =…

A: Y = C + I +G + M Y = (A* + b YD) + I* -lr + M Y = A* + b (Y - T* - tY ) + I* - lr + M* + mY Y = A*…

Q: 2. The following equations refer to the goods market of an economy in billions of euros: Y=1610…

A: Given, C=480+0.5YDI=110T = 70G=250

Q: Suppose that a simple economy has the following parameters. C = 100 + 0.8Y | = 100 a. Complete the…

A: Given: C= 100+0.8Y & I = 100 To get the value of C, the given values of Y can be put into the…

Q: Explain how national income is determined in a 3-Sector Economy ?

A: Economics is a branch of social science that investigates how economies produce and use goods and…

Q: Disposable ncome and Consur llar MILO 11414 DAI DAM Using the infomation in the sabie, graph the…

A: A consumption schedule is table of numbers showing the relation between consumption expenditures and…

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: 12 Study the following diagram and answer the question that follows. Expenditures (billions of…

A: Consumption function is consists of autonomous consumption and consumption dependent on Income. C…

Q: Recently, the federal government passed the "Tax Cuts and Jobs" Act, which cut income taxes for…

A: Tax cuts have a positive influence on the job market. As taxes are reduced, the disposable income…

Q: Assume a closed economy with a GDP (Y) of 6,000. Consumption (C) is given by the equation C = 600+…

A: Aggregate Demand: Aggregate demand in an economy is the sum of private consumption expenditure (C),…

Q: 11:04 AM ECON 122 CAT ONE.docX Phoenix Files QUESTION ONE Is it desirable for a country to have a…

A: The Gross Domestic Product (GDP) of a country is a measure of the total value of all goods and…

Q: 13. Consider the case of two tourists visiting Charlottetown. One is from Montreal, and the other is…

A: GDP (Gross domestic product) refers to the monetary value of all final goods and services that…

Question

1. The Following equations describe an economy:
Y=C+I+G
C = 240 +0.5(Y-T)
I = 200-10r
G = 100
T = 80
(M/P)d=Y-20r
M = 1200
P = 4
What are the Equilibrium level of income and the real interest rate.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Solve this economic
For the following economy, find the equilibrium level of income. C = 10 + 0.75Y I = 50 – 5r r = 25 - MS G = 20 MS = 20 (assume price level, P = .5)
2. Over the past few years, one of the most closely monitored economic variables has been the inflation rate, which measures the change in the price level. Measuring it is complicated because different prices change by different amounts and sometimes in different directions (for example, the price of college tuition has been steadily rising for decades, whereas the price of TV sets has been decreasing). We can use the expenditure function to aggregate the change in the price level, by asking how much more it costs to achieve the same utility level under the new prices. That is, if the prices change from (P₁, P₂) to (P₁, P₂), where p₁ > p₁ and pź > P₂, we can define the inflation rate as: b. i 1 1 Suppose Bebel has a Cobb-Douglas utility, U = 9₁²9₂², and an income level of Y = 1600. Suppose p₁ = 100 and p = 100 so the price of good 1 doesn't change, but the price of good 2 increases from p₂ = 16 to p2 = 25. a. Calculate Bebel's optimal consumption bundle and utility level at the initial…
4. Assume the following model of the expenditure sector: AD=C+I+G+NX C = 420 + (4/5)YD YD=Y–TA+TR TA = (1/6)Y TRo = 100 Io = 160 Go = 180 NXo =–40 b) Assume we want to reach Y* = 2700 by changing government transfer payments (TR) instead. By how much should TR be changed?
Please answer all questions
Imagine that the economy can be modeled as follows: AE=C+l+G C = 200 + .8Yd I=250 G=150 T=100 Graph the economy.
You Answered Suppose that the economy is made up of a single firm, which pays $300rin interest payments, pays $300 in its labour costs, and pays $2,000 in rental costs for its building. The rest of its revenues are paid out to the owners of this firm. Correct Answer This firm also produces $10,000 of its final product, selling $7,000 to domestic consumers, keeping $2,000 to replenish its inventories, and selling the rest abroad. In this little economy, using the Income Approach, what is the total amount of Business Profits? Note: Round your answers to two decimal places. 8,700 9.400 margin of error +/-0.1
2. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs. Based on this model, households earn income when purchase in factor markets. Suppose Maria earns $775 per week working as a doctor for the Medical Clinic. She uses $8 to have breakfast at Dinah's Diner. Dinah's Diner pays Kevin $475 per week to work as a short-order cook. Kevin uses $250 to purchase medical services from the Medical Clinic. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Kevin spends $250 to purchase medical services from the Medical Clinic. Maria spends $8 to have breakfast. Kevin earns $475 per week working for Dinah's Diner.…
3. Briefly explain whether production of each of the following goods is likely to fluctuate more or less than real GDP does during the business cycle: • Tesla Model 300 • McDonald's Big Macs Whirlpool Refrigerator Pampers Diapers ● You are required to explain your answers for each of the products listed above. Ensure you reference your data sources and any academic articles that support your answers. Hint: Graphing the answers may make it visually easier to determine your answer. Please include all graphs, charts, and diagrams in your assignment.
please answer the question in the attached picture with work shown, thanks! #5
13. The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green shows the flow of dollars, and the inner set of arrows (sh in red) shows the corresponding flow of inputs and outpu Firms Markets for Goods and Services Markets for Factors of Production Based on this model, households earn income when in factor markets. purchase Suppose Ginny earns $600 per week working as a cook fo Wingies. She uses $9 to take a spin class at Silver's Gym. Silver's Gym pays Eric $325 per week to work as a trainer. uses $125 to purchase chicken wings from Wingies. Households Identify whether each of the following events in this scenar occurs in the factor market or the product market. Factor Market Product Market O O Event Eric earns $325 per week working for Silver's Gym. Ginny spends $9 to take a spin class. Ginny earns $600 per week working for Wingles. Ginny's labor Which of the elements of this scenario represent a flow fr…
Give an example of a consumption good and an example of an investment good. Explain why the two are different, as a macroeconomist would think of them differently. Also, explain why investment is important for the long term health of an economy.