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- What is the Euler equation for consumption, and what is its economicinterpretation?Use the behavioural equations below and answer the questions that follow: C = R4 billion + c1YD = R19.7 billion Y= R13.1 billion T= R6 billion c0 = R13.5 billion i. Calculate the propensity to consume.Please solve these questions: G Consider the following consumption dataset over X = R³ : i 1 2 3 4 5 (1, 2, 5) 7 (2, 2, 0.1) 1.5 (2, 1, 3) 9 (3, 5, 0.5) 3.5 (1, 1, 0.5) 3 (5, 1, 0) (0, 0.5, 5) (3, 0, 1) (0.5, 0, 4) (0,3,0) 1. List all weak and strict direct revealed preferences satisfied by this dataset. 2. List all weak and strict indirect revealed preferences satisfied by this dataset. 3. Does this dataset satisfy GARP? Explain why or why not.
- Economics Consider the following estimated model based on quarterly data of Australian manufacturing exports from January 2015 to December 2019. EXP: = -5.38+0.191Y, + 0.0216FDI_+2.61t t-1 Where EXP, Y and FDI represent manufacturing exports (in thousand dollars), output (in thousand dollars) and foreign direct investment (in thousand dollars), respectively. The following is an excerpt of the actual data. What is the predicted exports in the fourth quarter of 2015? Period Y FDI Third quarter of 2015 57234 344 Fourth quarter of 2015 60031 385 Question 13 options: A11478.41 thousand dollars. B11525.50 thousand dollars. C1151.92 thousand dollars. D11520.17 thousand dollars.QUESTION 2 For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd | = 220 – 25i %D = 240 = 150 T= .2Y L = .1Y – 3i 125 The equations for the IS and LM (to two decimal places) are Y= 2168.4 – 69.5i and Y = 3i + 125 Y= 780 – 25i and Y = 30i + 1250 %3D Y= 2168.4 – 69.5i and Y = 30i + 1250 Y= 2168.4 + 69.5i and Y = 30i – 1250If all 110 million households spent the same additional dollars on appliances, electronics, and furniture as the sample 30,000 rebate receiving households did so, how much did aggregate consumption increase?
- Explain the following equation precisely. Y = -231.8 + 0.7194X What is it mean by “hypothesis testing"? Based on equation in question (6), suppose the real GDP is expected to be $13800 (billions) in 2019. What is the forecast consumption expenditure in 2020?For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd |= 220 – 25i G 240 %3D TR 150 T= .2Y L= .1Y– 31 = 125 The equations for the IS and LM (to two decimal places) are OY= 2168.4 - 69.5i andY = 30i + 1250 OY= 2168.4 - 69.5i and Y = 31 + 125 Y= 780 - 25i and Y = 30i + 1250 Y= 2168.4 + 69.5i and Y = 30i – 1250 ミ1a EIf disposable income is $800 billion when the average propensity to consume is 0.8, it can be concluded that saving is
- Use an ISLM model to analyse the effects of an increase in government expenditures on the interest rate and GDP,(i) in the case where the IS curve is quite flat and the LM curve is quite step,The equations for two consumption functions are shown below: C = 300+ 0.5Y C = 0.5Y We denote the equation: C = 300+ 0.5Y as C, and the equation: C = 0.5Y as C₁. These equations are graphed on a grid with aggregate consumption (C) on the y-axis and aggregate income (Y) on the x-axis. Given this information, the equation for C has a vertical intercept of and a slope of response as a whole number. Round your second response to one decimal place.) (Enter your first The equation for C, has a vertical intercept of and a slope of (Enter your first response as a whole number. Round your second response to one decimal place.) If the consumption function is C = 300+ 0.5Y, when income rises, APC If the consumption function is C = 0.5Y, when income rises, APCThe life cycle model of consumption argues that people consume and save in different proportions as they age. Seniors tend to consume more than save as their lives adjust to the realities of old age. Assuming the hypothesis is true, how would the aging of the very large baby boomer generation affect consumption and income?