The following are the parameters for the simple economy of Minnerva, which has no government involvement and no international trade. C 1,360+0.60Y 1=1,450 a. The value of expenditures equilibrium is $[ b. The value of the multiplier is Round your answer to 3 decimal places. c. If investment increases by 380, the new value of expenditures equilibrium is $
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- EV Text Predictions: On The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. W 8 ZIN 200 SAN 400 500 GOO Aggregate expenditures ($billions) 700 HANS 800 600 HOD 200 T GO 1541 100 Accessibility: Investigate YD GB 200 460 620 C 400 130 195 Income (Sbillions) 325 The Economy of Arkinia 455 600 Search 5 800 -3 10 40 100 Tools MAL I se A SB 50 Se 58 50 30 50 Sa Draw a 45° line (labelled Y) and the aggregate expenditure function, labelled AE1. Identify expenditure equilibrium with the letter et. Use the tool "et" to show the expenditure equilibrium. Plot only the endpoints of Y and AE. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. G 180 AE₁ IMO 180 THIN 13 180 186 tac taid X 50 sa SAMSUNG 50 10 50 50 54 549 50 IM 40…1. What would happen to multiplier if investment were to be positively related to income? 2. is it possible for total saving to fall when people beome more thirfty? 3. What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?Explain two effect of public expenditure on the investment??
- The cost of rebuilding the Philippines after typhoon Haiyan could reach USD 5.8bn”, a senior official has said. Assume the government of Australia Department of Foreign Affairs and Trade provided a grant of USD 5.8 billion. Also assume that despite the hardships the Philippine families experienced, 15% was the beneficiary savings from the Australian grant. Further, assume all other factors remain constant.a. Calculate the total effect of the spending multiplier of the Australian government grant on the Philippine economy GDP growth. b. Examine the overall multiplier effect of the USD5.8 billion grant on the Philippine economy. Answer asap n correctly with proper typed explanation. If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD Government expenditure = 200MJD, Net exports = 200MJD, so the equilibrium income is equal Options are 3800,2800,1800,4800. Don't copy previous question becuase it is wrong?During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this economy is known to be equal to 10.Which of the following might have caused the increase in real GDP? Question 12Answer a. Exports increased by $0.3 billion. b. Investment decreased by $0.3 billion. c. Exports decreased by $0.3 billion. d. Imports increased by $0.3 billion. e. Government expenditure on goods and services increased by $3 billion.
- 40. If the expenditure mutiplier in a closed economy without govemment activites equais 4 what is the MPC in ths economy? a. 025 b. 0.20 C. 0.75 d. 0.80 Use the information below to answer questions 41-43. In an economy at zero disposable income consumption is 1200 milion. The marginal propensity to save in this economy is 0.25 41. What is the consumption function for this economy? a. C 1200 0.25Yd b. C 1200 0.75YA C C-0+0.75Yd d. C=-1200 25Yda 42.If Yd = 6000 milion, what is consumption expenditure in this economy? a. 6000 million b. 5700 million e. 7200 millon d. 5200 million 43. What is saving in this economy at Yd= 6000 milion? a -1200 b. 300 C. 1200 d. 300 44. An increase in minimum wages unmatched by high productivity leads to a. demand pull inflation b. cost push inflation e. imported inflation d. creeping infation 45 Full employment occurs when a. actual output exceeds potential output b. actual output is less than potential output C. actual output is equal to potential output…Assume in a simple economy that thc level of saving is -500 when aggregate ourput equals zero and that the margina! propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these func- tions. At what level of aggregate ouiput does the consumption curve cruss the 45° line? Explain your answer and show this un the graph.The diagram below shows the consumption schedule for a private closed economy. The level of planned investment is $6 billion. a. Using the diagram, draw the aggregate expenditures schedule for this economy and then identify equilibrium GDP. Instructions: (1) Use the tool provided 'C + I'to draw the aggregate expenditures schedule for this economy. (2) Use the tool provided 'Equilibrium' to identify the new equilibrium GDP. Aggregate Expenditures Schedule 50 Tools 40 C+1 Equilibrium 30 20 10 10 20 30 40 50 Real GDP (billions of dollars) Instructions: In part b, enter your answer as a whole number. In part c, round your answer to 1 decimal place. b. What is the equilibrium GDP for this country? billion c. What is the marginal propensity to consume for this country? Aggregate expenditures (billions of dollars) 18
- QUESTION 21 What is the marginal propensity to consume? a. The ratio of the change in consumption to the change in national income O b. The proportion of national income that goes on consumption O c. The additional spending by a consumer when the price of a good falls O d. The additional revenue received by a firm when it attracts a new customerIf the government 40 M on building a new highway calculate the multiplier and total new income qiven the following. MPC .85 MPS .1 MPC .6 Multiplier 4.8If the MPC in an economy is .9 and aggreagte expenditures increase by $4 billion, the equlibrium GDP will increase by a. 40 billion b. 4.9 billion c. 36 billion d. 4 billion