13. 14. If government spending increases by $15, what is the new equilibrium level of real GDP? What are - the equations for the consumption, net

How would I do D?

4. Planned expenditure and income The following table shows consumption (C), investment spending (I), and government purchases (G), in a hypothetical economy for various levels of income. Also assume that there is an income tax rate of 25%, that base consumption is $100 billion, and that the MPC is 0.333, or 1/3. This economy is closed, with no international trade, therefore net exports are equal to zero and should not be considered. Use the given information to fill in disposable income, consumption, and planned expenditures in the following table. Income: Real Disposable (After Tax) Planned GDP Income C I, G Expenditures (Billions of (Billions of dollars) (Billions of (Billions of (Billions of (Billions of dollars) dollars) dollars) dollars) dollars) 100 50 150 100 50 150 200 50 150 300 50 150 400 50 150 500 50 150

3. Many parts of the economy are related to one another. In particular, a decrease in spending in one area may have an impact somewhere else. Provide an example of this scenario. Economic theory tells us that "one person's spending is another person's income." What is meant by this phrase? Explain in your own words.

Based on the chart in question 8.06, if investment rises from $120 to $130 and the price level is fixed. By how much will the equilibrium real GDP increase?

4. Assume a closed economy in which disposable income starts at 1,000 and increases by 500; consumption starts at 1,100 and increases by 300; investment spending is 1,000 and government spending is 500. The MPC is 0.6, The multiplier is 2.5, and The consumption equation is C = 500 + 0.6DI   Equilibrium GDP is? A 3,500 B 3,000 C 4,000 D 5,000

QUESTION 6 Refer to the table. If the full-employment real GDP is $100, the: Consumption (after taxes) $-20 Real GDP Government Purchases $15 Gross Investment Net Exports $0 $10 $+5 10 10 +5 15 40 20 10 +5 15 70 40 10 +5 15 60 80 100 inflationary expenditure gap is $30. 100 10 +5 15 130 10 +5 15 160 10 +5 15 inflationary expenditure gap is $10. recessionary expenditure gap is $30. recessionary expenditure gap is $10. O hyper recessionary expenditure gap is $100. O O O C

Click on the icon to read the news clip, then complete the following steps. Business inventories fall when real GDP rises because 1800- 1600- Aggregate expenditure (billions of 2002 dollars) ○ A. inventories are falling from above target to their target levels 1400- B. firms put more production time into producing consumption goods and services OC. firms put more production time into producing exports 1200- OD. both B and C are correct 1000- The graph shows the aggregate planned expenditure curve. Draw a new AE curve to show the effect of an increase in exports and business investment. Label it AE₁. 8004 800 1000 1200 1400 45 degree line G AE 1600 1800 Draw a point at the new equilibrium expenditure. Draw an arrow along the new AE curve to show the effect of the increase in real GDP on consumption expenditure. Real GDP (billions of 2002 dollars) >>> Draw only the objects specified in the question. - News clip Business Inventories Decline, GDP Rises Real gross domestic product (GDP)…