7 You are given the following data concerning planned expenditure on Heron Island: (figures are in billions of dollars)C = 8.5 + 0.5 YdTA = 0.25 Y + 0.1Import (IM) = 0.05 + 0.1 YExport (EX) = $5.5Govt. expenditure (G) = $5Investment (I) = $3.5a. Calculate real GDP at equilibrium expenditure. Numberb. Calculate autonomous tax multiplier Numberc. Calculate investment multiplier. Numberd. Calculate marginal tax rate multiplier. Numbere. The change in real GDP resulting from a $3.2 billion rise in government expenditure. Number Using the following data, determine:National Income (GDP)1,450 billionMarginal propensity to consume, b0.7Proportional rate of taxes0.2Autonomous expenditure50 billionExports400 billionMarginal propensity to import, MPIM0.33Part 1: Level of Canadian imports, M? NumberPart 2: Level of Canadian net exports, NX? NumberPart 3: Is the trade balance in: (answer 1 for Surplus or 2 for Deficit )Number

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You are given the following data concerning planned expenditure on He C = 8.5 + 0.5 Yd TA = 0.25 Y + 0.1

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

You are given the following data concerning planned expenditure on Heron Island: (figures are in billions of dollars)
C = 8.5 + 0.5 Yd
TA = 0.25 Y + 0.1
Import (IM) = 0.05 + 0.1 Y
Export (EX) = $5.5
Govt. expenditure (G) = $5
Investment (I) = $3.5
a. Calculate real GDP at equilibrium expenditure. Number
b. Calculate autonomous tax multiplier Number
c. Calculate investment multiplier. Number
d. Calculate marginal tax rate multiplier. Number
e. The change in real GDP resulting from a $3.2 billion rise in government expenditure. Number

Using the following data, determine:
National Income (GDP)
1,450 billion
Marginal propensity to consume, b
0.7
Proportional rate of taxes
0.2
Autonomous expenditure
50 billion
Exports
400 billion
Marginal propensity to import, MPIM
0.33
Part 1: Level of Canadian imports, M? Number
Part 2: Level of Canadian net exports, NX? Number
Part 3: Is the trade balance in: (answer 1 for Surplus or 2 for Deficit )
Number

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