MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 9, Problem 1SQ
To determine
The formula to calculate the aggregate expenditure.
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Check out a sample textbook solutionStudents have asked these similar questions
Between 2014 and 2015, the exports of the U.S. economy decreased by $5 billion and its imports increased by $5 billion. All else
equal? By how much has the GDP changed between the two years?
Select one:
a. None of the answers are correct
b. The change in net exports will increase GDP by $5 billion.
c. The change in net exports will decrease GDP by $5 billion.
d. The change in net exports will decrease GDP by $10 billion.
e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
Assume that total expenditure E comprises the sum of government consumption, G, household consumption, C, and investment, I. Assume a closed macroeconomic system, so that income equals expenditure Y=E. If we define household saving, SH, as SH=Y-T-C, where Y is national income and T is total taxation, which of the following will be true?
a. SH=I+G
b. SH=I-G-T
c. SH=I+(G-T)
d. SH=I
Problems 2. Draw the graph and label correctly
Suppose in a simple economy with no foreign sector, the mpc equals 0.8. Intended investment spending
has suddenly fallen, reducing AD and output to a level that is 100 million below Y*. (FE)
a. If the government decided to try to get the economy back to full employment using only an increase
in government spending (AG), by how much would G need to be increased?
b. If the government, instead, decided to try to get the economy back to full employment using only a
Jump-sum tax cut (AT), how big of a tax cut would be needed?
Chapter 9 Solutions
MACROECONOMICS FOR TODAY
Ch. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQPCh. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQP
Ch. 9 - Prob. 10SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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- Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. (2) Aggregate Expenditures, Output (GDP = DI), Private Closed Economy, Billions (6) Aggregate Expenditures, Open Economy,. (5) Net Exports, (1) Real Domestic (3) Еxports, (4) Imports, Billions Billions Billions Billions Billions $300 $340 $30 $10 350 380 30 10 400 420 30 10 450 460 30 10 500 500 30 10 550 540 30 10 600 580 30 10 650 620 30 10 Net exports = $ billion Equilibrium GDP = $ billion d. What is the multiplier in this example?arrow_forward03 If consumers increase their preference for foreign goods and services, aggregate expenditure will likely: Multiple Choice increase at first and then decrease. decrease. increase. remain constant.arrow_forwardIn a closed economy, subsistence consumption is 10 billions, households spend 60% of their net disposable income on leisure consumption, investment is constant at 40 billions, taxes are 20 billions, government spending is 20 billions and the gross domestic product is 145 billions. Assume that suppliers always respond to variations in demand, that it takes them 1 month to adjust to new demand levels and that they make adjustments once per month (if any). One day, the government increases its spending to 30 billions. After 2 months (at the end of the 2nd month), by how much has the gross domestic product increased? Select one: a. 16 b. 25. c. 32 d. 50arrow_forward
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