Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 10, Problem 12E
To determine
Use the information in the following table:
What is the equilibrium level of real GDP?
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Find equilibrium GDP using the following macroeconomic model
Use the information below to calculate the equilibrium level of GDP. C=500+0.5Yd, I=300, G=2000, T=600. b. What happens to the equilibrium level of GDP if consumption decreases to 400?
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dramatically, the real GDP for the economy can still fall.
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- Briefly explain the reason for the near-vertical shape of the SRAS curve on its far right.arrow_forwardFrom the following data, determine the equilibrium level of real GDP.The equilibrium level of real GDP is ______________.arrow_forward“If taxes and government spending are increased by the same amount, there will be no effect on equilibrium GDP.” True or false? Explain and support your answer using a specific hypothetical example.arrow_forward
- An economy is described by the following equations: Supply: Y=F(K,L)=6K^0.6L^0.4 K=405, L=110 Demand: C=231+0.8(Y-T) |=1161.0-129r G=150,T=120 NX=125-490e r=r*= 5 A. What Is the level of GDP in this economy? B. How much are household savings? C. How much Is the government saving? D. How much is National Saving? E. How much is investment spending? F. Net capital outflow is: G. Equilibrium exchange rate is : Suppose G drops to 142, Find: H. National Saving I. Investment J. New trade balance K. New Equilibrium exchange ratearrow_forwardUse the following information to complete the calculations. C = 15235 + 0.67Y I = 8777 G = 3425 NX = -551 What is the value of autonomous expenditure (AE)? Round your answer to the nearest dollar. AE: $ Calculate the equilibrium level of GDP. Round your answer to the nearest dollar. GDP: $arrow_forwardWhat will be the short-run effect of the shift in the reaction function on GDP?arrow_forward
- determine the equilibrium level of real GDP and the MPC.arrow_forwardCalculate total GDP for this economy given the following components of supply. Round your answer to the nearest tenth and enter the value in trillions of dollars (i.e. $xx.x trillion). of GDP on the Supply Side (in trillions of dollars) Components Durable goods Nondurable goods Services Structures Change in inventories Provide your answer below: trillion Total 3.8 2.7 12.2 2.1 0 ?arrow_forwardName two macroeconomic variables that decline when the economy goes into a recession. Name one macroeconomic variable that rises during a recession.arrow_forward
- 17 01:27:36 Use the following diagrams for the U.S. economy to answer the next question. AS₁ AS₂ 这 AD Real GDP (1) AS₂ AS, * AD (3) Real GDP (2) NY AD₂ AD₁ Real GDP AD₂ Real GDP AD₁ If the economy is initially at full employment, which of the diagrams best portrays a recession resulting from a decrease in government purchases?arrow_forwardCalculate the equilibrium level of output (income) for the following economy: Consumption C = 1500+0.75Y Investment I = 500arrow_forwardCalculate the four components of aggregate expenditure and GDP for the following economy using data from the table below. Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers. Consumption expenditures Exports Government purchases of goods and services Construction of new homes and apartments Sales of existing homes and apartments Imports GDP Beginning-of-year inventory stocks End-of-year inventory stocks Business fixed investment Government payments to retirees Household purchases of durable goods Consumption expenditures: $ Investment expenditures: $ Government Purchases: $ Net Exports: $ GDP: $ $800 $50 $200 $200 $200 $125 $100 $100 $100 $100 $150arrow_forward
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