Explain graphically the determination of equilibrium GDP for a private economy through the aggregate expenditures model. Now add government purchases (any amount you choose) to your graph, showing its impact on equilibrium GDP. Finally, add taxation (any amount of lump-sum tax that you choose) to your graph and show its effect on equilibrium GDP. Looking at your graph, determine whether equilibrium GDP has increased, decreased, or stayed the same given the sizes of the government purchases and taxes that you selected.

The following graph plots an aggregate demand curve.   Using the graph, shift the aggregate demand curve to depict the impact that a tax hike has on the economy.   Suppose the governments of two very similar economies, economy Y and economy Z, implement a tax cut of equal size. The tax cut in economy Y is temporary, while the tax cut in economy Z is permanent. The economies are otherwise completely identical.   The tax cut will have a smaller impact on aggregate demand in the economy with the  (temporary tax cut/permanent tax cut)  .

Suppose that the economy is depicted by the following relationship: where: C=$100 +0.75 (Y-T) G= $ 600 T = $ 600 1= $200 X = $ 50 Expenditures =C+I+G+X The economy is in equilibrium at a level of real GDP or income of $ Now suppose that the government decides to increase government spending by $50. What is the new equilibrium level of GDP or income? $(Round your answer to the nearest dollar) (Round your answer to the nearest dollar)

How do the instances when expansionary fiscal policy should be used compare with those for contractionary fiscal policy?     Expansionary fiscal policy should be used during recessions to help build the economy and contractionary fiscal policy should be used when there is high inflation.   Expansionary fiscal policy should be used to increase government revenue and contractionary fiscal policy should be used to increase consumer spending.   Expansionary fiscal policy should be used to combat high inflation and contractionary fiscal policy should be used to increase government revenue.   Expansionary fiscal policy should be used to decrease the unemployment rate and contractionary fiscal policy should be used when economic growth is too fast.

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Suppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income Consumption (dollars) $12,000 20,000 28, 000 (dollars) 12,000 24,000 36,000 36, 000 48, 000 44 ,000 60, 000 52,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to 2 decimal places. a. What is the equilibrium level of consumption? b. What is the MPC and MPS for this economy? MPC: MPS: c. What is the value of autonomous consumption for this economy?

The aggregate demand function: yad =C+1+G₁ = 500+ 0.75Y is plotted on the graph to the right. The graph also shows the 45° line where aggregate output Y equals aggregate demand yad for all points. What happens to aggregate output if government spending rises by 100? The equilibrium level of output rises by $ billion. (Round your response to the nearest billion.) Consumption Expenditure, C ($ billions) 3000- 2800- 2600- 2400- 2200- 2000- 1800- 1600- 1400- 1200- 1000- 800- 600- 400- 200- 0- 0 yad =C+I+G₁ = 500 +0.75Y Y = yad 45° 400 800 1200 1600 2000 2400 2800 Disposable Income ($ billions)

The Following Questions include graphs that I cannot upload if you can please help with visuals also, thank you. The following graph shows the consumption function (C) for a hypothetical private closed economy and a 45-degree line along which aggregate expenditure equals real GDP (AE=Y). Recall that a private closed economy does not have government and does not trade with the rest of the world (so G=0 and (X-M)=0). In a private closed economy, real GDP is equal to disposable income. At the current real interest rate, the level of investment in this economy is equal to $50 billion at each level of real GDP. Use the blue line (circle symbols) to plot this economy's initial aggregate expenditure line, (C + I). Then, use the black point (X symbol) to indicate this economy's initial equilibrium output. Dashed drop lines will automatically extend to both axes. (Hint: You can see two of the coordinates along the consumption function by mousing over the green triangles on the graph.) At the…

Suppose the MPC in an economy is 0.95. What should the government do with taxes if they want to increase Total Spending by $665? Show your work

Question 1 Given the following data on simple closed economy: C= 10 + 0.75 Y I= 20 G= 40 where C is aggregate consumption, Y is national income, G is government expenditure on goods and services, and I is investment expenditure. Note: There is no taxes assumed in parts (i) to (iii). ) What is the equilibrium level of national income? Show all your workings. (ii) What is the value of aggregate consumption and the value of aggregate savings at the equilibrium level of the national income? Show all your workings. ( (iii)What would be the new level of national income if government expenditure increased by 10? Show all your workings.