Consider a simple​ model, such as the one developed in this chapter. The table to the right shows the levels of desired​ consumption, desired​ investment, and desired aggregate expenditures for various levels of actual national income.

Suppose that a new free trade agreement allows the economy to import cheaper goods from overseas, thereby decreasing the general price level. Adjust the following graph by either shifting the consumption function curve or the initial point on the consumption function curve (A) to illustrate the impact of a fall in the price level.

Please answer everything in the photo including the graph.

For the y axis, why is it labeled income and not consumption output

Consider a national income model as: Y= C + I0 + G Y= National Income C= (Planned) Consumption Expenditure  I0= Investment  G= Government Expenditure    Consider Y= 20trillion, G= 4.2trillion, I0= 3.8 trillion. Explain the key elements missing from the National Income model. Add a new endogenous variable to represent that missing element or endogenize one of the exogenous variables to address this issue. C= a+ b(Y-T0)   (a>0, 0<b<1) G= gY   (0<g<1)

The private consumption of Macroland is given by C=500+0.75Y and the private investment function is given by I=400−1000r, where r is the interest rate and Y is the GDP. The planned aggregate expenditure can therefore be written as PE=C+I=900+0.75Y−1000r. The equilibrium in the goods and services market happens when the planned expenditure is equal to the actual expenditure, or PE=Y Find the equilibrium GDP by solving the system of equations PE=900+0.75Y-1000r PE= Y for Y and PE. Note your solutions will depend on r! 1. Plot your solution for Y in a diagram measuring Y on the horizontal axis and r on the vertical axis. This curve is called the IS curve.

Consider the basic Macroeconomic model involving:        Private sector consumption: C = co+c1(Y-T); Y = GDP, T = Taxes        Tax function: T = to+t1Y        Business sector investment: I = io+i2r, r=interest rate        Government spending: G = Go        Exports: X = xo+x1x; x = Exchange rate of the dollar        Imports: M = mo+m1Y+m2x; x = Exchange rate (a) Identify and explain the parameters: co, t1, i2, and m2. (b) Solve this model for the equilibrium GDP (Y*).

Questions attached below

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Use the information below for a four sector economy, answer the following questions: C 300+0.6 Yd T = 60 1 = 300 G = 650 X = 600 M 350 +0.15 Y C = Consumption function T = Tax function I = Investment function G = Government expenditures function X = Export function M=Import function Y = National Income YD = Disposable Income function Yf = Full Employment Income Ye Equilibrium income a. What is the value of autonomous expenditures? Number b. What is the slope of aggregate expenditure? Number c. What is the value of equilibrium GDP? Number d. What is the value of the autonomous tax multiplier? Number e. What is the value of Consumption (C) at equilibrium? Number f. What is the value of Savings at equilibrium? Number