(Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
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- (Aggregate Expenditure) What are the components of aggregate expenditure? In the model developed in this chapter, which components vary with changes in the level of real GDP? What determines the slope of the aggregate expenditure line?
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- (Consumption) Use the following data to answer the questions below: Consumption Real Disposable Income (billions) Expenditures (billions) Saving (billions) $100 $150 $ $200 $200 $300 $250 $400 $300 Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis. If the consumption function is a straight line, what is its slope? Fill in the saving column at each level of income. If the saving function is a straight line, what is its slope?(Consumption Function) How would an increase in each of the following affect the consumption function? Net taxes The interest rate Consumer optimism, or confidence(GDP Demanded) How is the aggregate expenditure line used to identify real GDP demanded assuming a given price level?
- (Multipliers) Suppose investment, in addition to having an autonomous component, also has a component that varies directly with the level of real GDP. How would this affect the size of the spending multiplier?4 please answer in type( not hand written) Explain the income approach to computing GDP in a Real-World Economy. [Be sure to explain each of the sectors that go into calculating Step 1. For Step 2, just mention the adjustments that need to be made].In the below table, C is consumption expenditure, Iis investment, G is government expenditure, and NX is the net exports. All entries are in million dollars. (SHOW THE STEPS OF CALCULATIONS) c) What is the unplanned inventory change when GDP is equal to $2200 million? d) How much is the level of savings when income is $2300 million?
- 1. (Table: Consumption for Four Consumers) Use Table: Consumption for Four Consumers. Construct the aggregate consumption function. Table: Consumption for Four Customers Santiago's Consumption Disposable Nicki's Manuel's Cardi's Income Consumption Consumption Consumption $0 $500 $1,000 $800 $1,200 1,000 1,000 1,900 1,600 1,800 2,000 1,500 2,800 2,400 2,400 3,000 2,000 3,700 3,200 3,000 4,000 2,500 4,600 4,000 3,600 a. Construct Nicki's consumption function. Disposaloce Nicdcts income Total Consumption consumptian Total6. Aggregate expenditure and income Suppose the following table shows consumption (C), investment (I), government purchases (G), and net exports (NX) in a hypothetical economy for various levels of real GDP. Assume that the price level remains unchanged at all levels of real GDP. Real GDP с G NX (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) 500 250 250 200 -150 600 325 250 200 -150 700 400 250 200 -150 800 475 250 200 -150 900 550 250 200 -150 The following graph shows real GDP on the horizontal axis and aggregate expenditure on the vertical axis. Use the orange line (square symbol) to plot a 45-degree line on this graph. Then use the blue points (circle symbols) to plot the aggregate expenditure line for this economy. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AGGREGATE EXPENDITURES (Billions of dollars) 1000 900 800 700 600 500 400 400…4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and government expenditures for the United States in 2020, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Consumption (C) Investment (I) Exports (X) Imports (M) Net Exports of Goods and Services Government Purchases (G) Gross Domestic Product (GDP) Data (Billions of dollars) 14,047.6 3,637.8 2,123.4 2,774.6 3,859.5
- 1. A consumer expenditure survey reports the following information on consumer spending: 2020 2021 Price Quantity Price Quantity Product (1) Product (2) Product (3) $10 7 $10 7 $6 10 $8 12 $12 5 $14 10 a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021?Give typing answer with explanation and conclusion what is the US GDP for the first quarter and second quarter of 2021? What is the personal consumption expenditures for the first quarter and second quarter of 2021?1. (Table: Consumption for Four Consumers) Use Table: Consumption for Four Consumers. Construct the aggregate consumption function. Table: Consumption for Four Customers Cardi's Santiago's Consumption Disposable Nicki's Manuel's Income Consumption Consumption Consumption $0 $500 $1,000 $800 $1,200 1,000 1,000 1,900 1,600 1,800 2,000 1,500 2,800 2,400 2,400 3,000 2,000 3,700 3,200 3,000 4,000 2,500 4,600 4,000 3,600 c. What is the MPC according to the aggregate consumption function? How is that related to the MPS?