Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations. ?=1000+0.5⋅?d ID = 600 G=700 T=400 EX=0.1⋅Y IM=100+0.1⋅Y YD = Y - T Calculate the equilibrium level of output Y* a) 2857 b) 4000 c) 6274 d) 4400 Whats the government expenditure multiplier? Whats the tax multiplier? Whats the ba;anced budget multiplier?
Q: s 62.36 units, and the profit (to the nearest penny) at this output le y to shift right. This will…
A: C= 0·003 q³ + 25q +750 AC = c/q = 0·003 q² +25+750/q dAC/dq = 0.006q - 750q2. =0 0.0069 = 750/q²…
Q: Table 6.2 Year 2016 2017 2018 2019 2020 Price of glitter ($) 1.6 1.65 1.72 1.7 2 Quantity of glitter…
A: GDP or gross domestic product is the sum of the value of all end commodities produced within the…
Q: A monopolist facing the demand curve Q = 42 – 0.6P operates with constant average and marginal costs…
A: Q = 42 – 0.6P MC=AC=20 Different market demand functions Q1 = 12 - 0.1P1 Q2 = 30 - 0.5P2
Q: Explain why the multiplier falls when taxes depend on income. .1 Assume the following for the…
A: Equilibrium income means that the flow and the demand for goods and services are equal. AD=AS or…
Q: How does the marginal propensity to consume (MPC) determine how GDP responds to policy changes? If…
A: The marginal propensity to consume (MPC) basically refers to the percentage of an additional dollar…
Q: The demand curve slopes downward to the right because Select one: O A. of comparative advantage. O…
A: Demand refers to quantity of a good or service that a consumer is able to buy at a given price in a…
Q: The table below shows price and quantity demanded for a market in which there is a single (monopoly)…
A: Monopolies are market structures in which a single firm or entity has complete control over the…
Q: The EPA says the value of a human life is $9.4 million, measured from birth to death. If life…
A: According to the information given, the value of a human life is $9.4 million measured from birth to…
Q: Under the simple conditions spelled out in class, if a bond is to pay off $115 in exactly one year…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Suppose a cable company provides cable service to a small town. The total revenue, marginal revenue,…
A: In a monopoly market structure, There exists a single seller. The monopolist maximizes it's profit…
Q: Graphically illustrate how each of the following events, ceteris paribus, will affect the market for…
A: Let the initial demand and supply curve of coffee is represented by D1 and S1. The equilibrium point…
Q: At the beginning of the year, your wealth is $10,000. During the year, you have an income of $90,000…
A: As given In the beginning, wealth =$10,000 During the year, Income = $90,000 Spending = $80, 000 on…
Q: On January 10, 2017, a man in Lebanon, Virginia, frustrated with the DMV bureaucracy, paid his DMV…
A: The required reserve ratio of a bank depicts the minimum amount of deposits a bank must keep as…
Q: Explain what happens when an economy experiences contractionary monetary policy. Be sure lo discuss…
A: The type of monetary policy aimed at reducing the supply of money in an economy, which results in…
Q: worker will change in which of the following ways? Capital per Worker Output per worker (A)…
A: Investment refers to the process of putting money or resources into an asset or project with the…
Q: Refer to the figure above. If the economy is at point b, to close the output gap the Federal Reserve…
A: Fiscal policy acts are those made by the government to influence the economy through spending and…
Q: Explain why the Leontief paradox and the more recent Bowen, Leamer, and Sveikauskas results reported…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: If the price of beef increases by 20% the quantity demanded of beef decreases by 80%. The price…
A: The percentage change in price of beef =20 Percentage change in quantity demanded of beef =-80 The…
Q: 1. In the settlements A-B-C whose purchasing power and trade area sizes are given below, the…
A: To calculate how the required trade area sizes will change in the settlements A-B-C, we need to use…
Q: Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5…
A:
Q: Japan and the United States are major trading partners and the exchange rate between the Japanese…
A: An exchange rate is the value of one country's currency relative to another country's currency. It…
Q: How relevant is the multiplier concept to the implementation of expansionary and contractionary…
A: The factor that shows either an increase or decrease in the base value is denoted by a multiplier.…
Q: A local government is considering building new public hiking trails in town. Suppose that the trails…
A: Public goods are products or services that are non-excludable and non-rivalrous, which means that…
Q: Revenue and cost (dollars per unit) 50 40 30 20 10 0 10 20 MC ATC AVC 30 40 50 Output (units per…
A: In perfect competition, There exists a large number of buyers and sellers. The firm maximize it's…
Q: Use the table of tax rates below to answer questions 3 through 7. Income range Tax rate $15,000 and…
A: Tax revenue is the product of tax per unit and quantity of good sold. Income tax is the tax that is…
Q: poly Outcome
A: The monopoly's increasing possibility are going to be to provide at the number wherever marginal…
Q: The law of supply of foreign exchange tells us that, other things remaining the same, Select one: O…
A: Foreign exchange refers to the exchange of one currency for another. It is the process by which…
Q: Of the countries listed, which has the most efficient economy with regard to energy per $ GDP…
A: Energy consumption per GDP refers to the energy intensity. It is an approach to determine the…
Q: Advanced Analysis: Refer to the following table, in which Qd is the quantity of loonies demanded, P…
A: Exchange rates can be either fixed or flexible. In a fixed exchange rate system, the value of a…
Q: 2. Briefly explain why the specific factors model is often considered a 'short-run' model. Give an…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: III Birkbeck Moodle 1 2 3 Qatar 45 Nominal per capita Luxembourg Norway * Switzerland Denmark…
A: Given that in New Zealand, Nominal income per capita = $32,163 PPP per capita = $27,130
Q: Consider a town in which only two residents, Lorenzo and Neha, own wells that produce water safe for…
A: Monopoly is a market condition in which there will be only a single seller present. The only motive…
Q: Native labor demand and supply are given by the following functions: w = 19 - 0.001ED and w = 10 +…
A: The point at which the demand for labor by employers is equal to the supply of labor provided by…
Q: If the long run macro aggregate supply curve is fixed and vertical, then after all is said and done…
A: Aggregate supply is the total amount of goods and services that the producers of the economy are…
Q: The government places a tax on the purchase of socks. The following graph shows the market for socks…
A: The state in which the supply and demand curves converge is known as equilibrium quantity before…
Q: A business that is using perfect price discrimination A. charges different prices to each customer…
A: In a monopoly market structure, There exists a single seller. The monopolist maximize its profit…
Q: Suppose that the marginal benefit of writing a contract is $400 and the marginal cost of that…
A: It is given that the marginal benefit of writing a contract of length to be $400 and marginal cost…
Q: explain whether there has been a market failure, what type of failure, and what measures might solve…
A: 1) Market failure occurs when the free market fails to efficiently allocate resources, resulting in…
Q: A farmer produces both green beans and corn. The farmer must give up 31 bushels of corn to get 7…
A: The Marginal Rate of Transformation (MRT) is a concept in economics that measures the rate at which…
Q: Suppose the New Orleans city council passes a price gouging law: during a hurricane, the price of a…
A: Price Quality Supplied Normal times Quantity demanded Hurricane Quantity Demanded $1500 100 10 40…
Q: what happens if consumers expect future interest rates to fall?
A: An interest rate is the amount of money a lender charges a borrower for the use of money, expressed…
Q: a) Consider a simple economy where 90 percent of citizens report an annual income of $10,000 while…
A: Lorenz Curve : The Lorenz curve is the graphical representation of the income inequality in the…
Q: NutraSweet Aspartame is a low-calorie, high-intensity sweetener known by Monsanto’s brand name,…
A: Monopoly refers to a type of market situation in which there is only one single seller that sells a…
Q: Which one is wrong considering Becker's model of labor supply? A. Makes a distinction…
A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…
Q: If aggregate planned expenditure exceeds real GDP, then inventories Select one: A. decrease and real…
A: Aggregate planned expenditure refers to the total amount of spending that households, firms, and the…
Q: The data suggests that global income inequality is greater in PPP terms than in nominal terms. is it…
A: Nominal per capita refers to the measure of a country's economic output or income per person without…
Q: (Figure: Monopoly with a Linear Demand Curve) Use Figure: Monopoly with a Linear Demand Curve. If…
A: In perfect competition, There exists a large number of buyers and sellers. The firm maximizes its…
Q: There are actually many economic / environmental theories, some now put into practice, that protect…
A: Environmental economics is a branch of economics that studies the economic impacts of environmental…
Q: dentify similarities and differences in the way Keynes and Hayek think about information and…
A: John Maynard Keynes and Friedrich Hayek were both famous economists with opposing views on how to…
Q: If a consumer starts at point A, and then receives an income in current income, this would appear as…
A: Budget constraint refers to a a graphical representation of all possible combination of two goods…
Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations.
- ?=1000+0.5⋅?d
- ID = 600
- G=700
- T=400
- EX=0.1⋅Y
- IM=100+0.1⋅Y
- YD = Y - T
Calculate the equilibrium level of output Y*
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Consider an economy that is characterized by the following equations C= 400 + 0 5 Vd I = 700 - 40001 + 0.1V G= 200 T= 200 (MP)d = 0.75Y - 75001 (M/P)' = 600 What is the equilibrium output/ income (X)?Consider the following economy C=1000+0.4(Y-T) 1%3500 T=400 G=300 What is the consumption of equilibrium?An economy is described by the following equations: C = 500 + 0.85(Y – T), Cis consumption, Y is income and T is taxation M=0.05(1-t)Y imports IP = 1500, planned investment G = 400, government spending T = tY, t = 0.2 is the marginal tax rate X = 1200, X is exports I. The equilibrium level of output for the above economy is 22500 Do NOT include any letters, spaces or symbols (e.g. "$" or ",") in your answer. II. The multiplier for this economy is equal to 6.67 (Round to 2 decimal places) III. Suppose that, in this economy, there is an exogenous decrease in spending of 180. This economy will now be experiencing expansionary gap. Possible answers (write ONE of the following only): "a contractionary" OR "an expansionary". IV. If the potential output of the economy is 10,000, the size of the output gap arising from part III will be Do NOT include any letters, spaces or symbols (e.g. "$" or ",") in your answer. V. If the Okun's Law beta parameter is 2, the cyclical unemployment rate…
- Consider an economy that is characterized by the following equations: C= 400 + 0.5 Yd I = 700 - 4000i + 0.1y G= 200 T= 200 (M/P)d - = 0.75Y - 7500€ (MP)== 600 What is the equilibrium consumption (C)?The following is a hypothetical estimate of a demand curve for butter over the period 2001–10. Qa = 145 – 1.5P- 0.001Y+ 2P. Where Qa is the quantity of butter sold in grams per person per week; Pis the price of butter (in pence per kg, at 2000 prices); Yis the anmual disposable income per head (in £s at 2000 prices); Pa is the price of margarine (in pence per kg, at 2000 prices). (a) If P is 50 pence, Yis £20 000 and P is 40 pence, what is the estimated value of Qa? (b) If the price of butter went up by 6 pence per kilo, all other things equal, what would happen to the estimated demand for butter? (c) Going back to the original price of 50 pence, if the value of Y now rose to £22,000 what would happen to the estimated demand for butter? (d) What is the income elasticity of demand for butter according to your calculations in (c)? What sort of good is butter according to this result? (e) Again, going back to the original demand, if the price of margarine now rose by 10 pence what would…Suppose that imports decreases by 10 and the other components remain. Will the level of saving and consumption change as the economy adjusts to this change in imports? Explain.
- In goa, india, the multiplier effect of iron export is calculated to be 1.62(Ta, 2003).calculate the impact of additional 1000rupees of iron ore export on the economy of goa.The economy of Godzillaland is represented by the following:C=50+0.25Y d , T=1000, G=1000, I=100 (a) Calculate the equilibrium level of output. Graph your solution. (b) If the government spending increases by 50 what is the new equilibrium level of output? Use the government spending multiplier. (c) If the government increases taxes by 50 what is the new equilibrium level of output? Use the tax multiplier. (d) If the government increases taxes and spending by 50 what is the new equilibrium level of output? (e) Calculate the equilibrium level of output in case where taxes depend on income according to the following: T=-25+0.125Y.The aggregate demand function: yad =C+1+G₁ = 500+ 0.75Y is plotted on the graph to the right. The graph also shows the 45° line where aggregate output Y equals aggregate demand yad for all points. What happens to aggregate output if government spending rises by 100? The equilibrium level of output rises by $ billion. (Round your response to the nearest billion.) Consumption Expenditure, C ($ billions) 3000- 2800- 2600- 2400- 2200- 2000- 1800- 1600- 1400- 1200- 1000- 800- 600- 400- 200- 0- 0 yad =C+I+G₁ = 500 +0.75Y Y = yad 45° 400 800 1200 1600 2000 2400 2800 Disposable Income ($ billions)
- Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP. 1% 20% 30% 55%Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Wages and Salaries 1000Consumption 1700Investment 700Depreciation 50Government Expenditure100Taxes 300Exports 50Imports 40Income receipts from rest of the world10Income payment to rest of the world50 What are net exports for China? 4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)What is the growth rate of GDP in Japan?Use the following information to answer questions 5 through 15: The tables below show data on prices and quantities of Oranges and Shoes produced in China. Data for 2014Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.7 200 10 270Data for 2015Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes0.9 150 14 250Data for 2016Price of Oranges Quantity of Oranges Price of Shoes Quantity of Shoes1.4 300 15 3305. Given this data, what is the Nominal GDP in 2014?6. What is the Nominal GDP in…Assume that an economy is characterized by the following equations: C = 100 + 0.5(Y – T) T = 100 G = 200 I = 50 – 2r (M/P) = (M/P) = Y – 6r (a) Solve for the equilibrium values of Y and r, assuming P = 10 and M = 4,000. (6 pointa) (b) Assume the federal government reduces spending to balance the budget. Calculate the effective IS-LM multiplier and explain why the equilibrium reduction in output was less than the value implied by the Keynesian-cross multiplier. (6 pointa)