The following diagram represents an economy in which government spending increases. PPF PPF2 C2 12 (0,0) Leisure, I -G2 Economists would say that "government spending is creating a crowding-out effect". What does it mean? Overall production in the economy is decreasing Although GDP is increasing, private consumption decreases due to the increase in taxes needed to finance the increase in government spending Leisure is increasing, which causes labor income to decrease, which means that consumers can afford less private consumption O Government spending decreases productivity in the economy Consumption, C

1.1. What is the US GDP for the first quarter and second quarter of 2020?  What is the personal consumption expenditures for the first quarter and second quarter of 2020?

A simple economy consists of three industries: agriculture, manifacturing and services. The input-output matrix associated with this economy is A M A 0.1 0.2 0.2 M 0.2 0.2 0.1 S 0.1 0.1 0.3 Find the gross output of goods needed to satisfy a consumer demand for 170 million dollars worth of agricultural products, 150 million dollars worth of manufactured products, and 180 million dollars worth of services. million dollars worth of agricultural products, and million dollars worth of manufactured products. million dollars worth of services.

Ca=25+0.75 (Y-T) lg = 50 Xn=10 G = 70 T= 30 (Advanced analysis) The accompanying equations are for a mixed open economy. The letters Y, Calg Xn, G, and T stand for GDP, consumption, gross Investment, net exports, government purchases, and net taxes, respectively. Figures are in billions of dollars. The equilibrium level of GDP for this economy is

Why is consumption spending insufficient to explain economic growth and rising standards of living?

In the below table, which decomposes GDP by expenditure for the U.S. and China in 2006. Compute the ratio of saving to GDP for each economy.

To which city are people from Barbados more likely to migrate?

Question 2 Diddy spends $1,500 on a new laptop to use in his business in San Francisco. The laptop was built in Canada. Investment spending and net exports both increase by $1500, GDP increases by $3000 Consumption spending increases by $1500, net exports decreases by $1500 Consumption spending and net exports both increase by $1500, GDP increases by $3000 Investment spending and GDP both increase by $1500 Investment spending increases by $1500, net exports decreases by $1500 Consumption spending and GDP both increase by $1500 O Investment spending and net exports both increase by $1500

In the ruins of an ancient Mesopotamian civilization, Dr. Jones has found what appears to be a partially intact government records about economic activity in the kingdom. From the recovered tablets, he learned that GDP was 12 billion, private consumption was  9.5 billion,transfers to poor were 1.5 billion, private investments were at 2.1 billion, government purchased goods and services in the amount of 1.7 billion and collect 3 million in taxes. Assuming the data are correct, what can you say about(a) net exports, (b) private savings, and (c) public savings. What do the numbers in (a), (b), and (c) mean?

Suppose that we are in an economy with international trade, the government, domestic consumption, and investment. The government retains a tax rate of 10%. - Suppose that we observe this economy at two levels of national income (Y) ceteris paribus: (i) Y = 1,000 and (ii) Y = 1,800. The amounts for each of these desired expenditure categories at each of these levels of Y are given by: At Y = 1,000: + Consumption = 1,000 - Government Spending = 550 %3D Investment = 150 %3D Imports = 100 t Exports = 150 At Y = 1,800: 4 Consumption = 1,560 - Government Spending = 550 Investment = 270 e %3D Imports = 180 Exports = 150 Based upon this data, answer the following questions. We will keep referring to four categories - these are Consumption (C), Investment (1), Government Spending (G), and Net Exports (NX). « | 1. Plot both of the Desired Consumption and Desired Savings Functions, with Y on the x-axis and C & S on the y-axis. Label both functions' y-intercepts, and the x-intercept for the…