Assume the following: Aggregate Expenditures (AE) = $2,500 • National Income (Y) = $1,500 • Consumption (C) = $150+ 0.9(Y – T) • Investment (1) = $500 • Government (G) = $800 • Exports (X) = $600 AY 0.10X
Q: The inflation rate in a country is 6% per year. What real rate of return will an investor make on a…
A: Real Rate of return is the proportionate or the profit percentage earned on investment after making…
Q: Connor produces and sells Thirium (a type of mineral). When Connor produces 10 containers of…
A: Marginal cost refers to additional cost incurred due to one more unit of output of produced.
Q: Assume that there is fairly free entry into the field of psychotherapy and that demand for…
A: Assume that there is fairly free entry into the field of psychotherapy and that demand for…
Q: Nikki owns a business that imports several types of products from countries that have poor economic…
A: If there are more employment opportunities available then this may lead to improve the economic…
Q: Disney’s 2021 and 2020 Christmas adverts ‘The Stepdad’ and ‘From Our Family to Yours’ depict…
A: Globalization, standardization, and localization Standardization refers to developing, promoting,…
Q: ) Assume that s = 3. (a) Find firm B’s profit function under the subsidy. (No work required.) (b)…
A: The cost is divided into two categories that are fixed cost and variable cost. The total fixed cost…
Q: Does the minimum efficient scale necessarily have to be where the marginal cost is minimal? Can…
A:
Q: 2. A bridge connecting two towns costs $15,000,000, has an average annual operating cost of $450,000…
A: Answer is given below
Q: Scenario 9 Maul Macadamia, Inc. has a monopoly in the macadamia nut industry. The demand curve,…
A: Consumer surplus refers to the area above the price and below the demand curve. It is the difference…
Q: With the helps of diagrams of money market, IS-LM and AS-AD, demonstrate and explain the effects of…
A: The money demand curve shows the inverse relationship between interest rate and the quantity of…
Q: Classical Growth theory predicts that O aggregate income always returns to the subsistence income O…
A:
Q: Using the Lucas Island model show that random shocks to the money supply will impact output while…
A: The Lucas Island Model refers to the model in economics that states the link between money supply…
Q: The Fed's Policies under Volcker In the years 1979 to 1982, under the leadership of Paul Volcker,…
A: Aggregate demand and aggregate supply model is used to determine real GDP and price level.
Q: For each of the following transactions, 1) determine whether it should be included in the…
A: Gross domestic product is the sum total of final values of services and goods produced in a year.
Q: 4. A decorator, who is a monopolist, makes two types of specialty picture frames. From experience,…
A: 4)
Q: 2. The Lorenz curve of a particular society is given by L(x) = Ax? + Bx. Suppose that the poorest…
A: 2) The Lorenz curve depicts how money (or wealth) is distributed throughout an economy.It was…
Q: 2a. What is the difference between Kyoto Protocol and Montreal Protocol? 2b. What kind of regulatory…
A: Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Suppose Y = C+ I + G C = 900 +.75(Y) I = 300 G = 400 a. Calculate the equilibrium GDP
A: GDP measures the value of goods and services produced within an economy in a given period of time.
Q: O the money demand curve to shift up to keep the interest rate constan
A:
Q: Determine whether each of the statement is true, false, or uncertain. If the statement is false or…
A: Economies of scale means production at large which reduces the per unit cost of firm .
Q: 25. Suppose an economy exhibits a large unexpected decrease in productivity growth that lasts for a…
A: Efficiency development or productivity growth alludes to an expansion in the worth of results…
Q: Suppose a competitive market has a horizontal long- run supply curve and is in long-run equilibrium.…
A: In financial matters, the long-run is a hypothetical idea wherein all markets are in harmony, and…
Q: INTEGRATIVE CASE After working for years as a regional manager for a retail organization, Scott…
A: S&S is a new Fast Moving Consumer Durables (FMCD) company that specialises in selling consumer…
Q: Would reducing inequality have any benefits for society in general? Specifically, would reducing…
A: Income, age, sex, sexual orientation, handicap, color, ethnicity, class, religion, and opportunity…
Q: Question 2 population 12, group B has population 12 and group C has population 4. Each person in…
A: According to the question, A region has 28 people in three income groups A, B, and C. Group…
Q: Explain the national economic system under which the USA operates
A: The United States has a mixed economy. It works as indicated by a financial framework that…
Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…
A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…
Q: 39. A product of inmate labor produced under the state-use system would be Ojet skis. Oproduct…
A: The state jail system is beset by issues ranging from overpopulation to widespread violence. Its…
Q: value of marginal productivity of labor and output price n wage elasticity of labor demand curve n…
A: The workforce or labour force is a theory explaining to the pool of human beings either in…
Q: Long run elasticity of supply is known as
A: Answer: Note: the question seems to be asking about whether the long-run supply is elastic or…
Q: Explain how the development of railroads led to the integration of global wheat markets in the…
A: Main rationale for Market Integration: A market (rather than coordinates) is used to bridge the cost…
Q: Please define in your own words the following terms: contractual savings institution, hedge fund,…
A: Contractual savings institutions: The contractual savings institutions are those that generally keep…
Q: Suggest solutions to the three major weaknesses of the New Classical Theory.
A: New classical approach Robert Lucas, T. Sergeant, and others developed it in an attempt to change…
Q: Suppose the federal tax on gasoline increased by 5 cents per gallon. Do you think that such an…
A: Energy is the lifeblood of any economy, and gasoline is the most widely used fuel on the planet. It…
Q: If you buy an insurance policy with a high deductible and co-payments, you would end up paying a. A…
A: The deductible is the amount you pay out of pocket for covered health-care services before your…
Q: Determine which option, if any, should be chosen based on net present worth using a 8% interest…
A: Project A First cost=$5000 Uniform Annual Benefit = $1100 Useful life=5 Year Project B=10200 Uniform…
Q: how was EVwSample info calculated for this problem?
A: Given:- state-of-nature probabilities are- P(s1) = 0.35, P(s2) = 0.35, P(s3) = 0.30. Condition…
Q: Craig Nuts Inc. will need to invest in a new nut cracking machine. The plant engineer has gathered…
A: Given, First Cost : $250,000Annual Benefits : $73,000 in the first year and decreases by $1,200…
Q: A producer of coffee mugs notes that the price of mugs has risen over each of the past three years.…
A: Supply is defined as to the amount of a commodity that manufacturers are willing to make and sell in…
Q: It approximates present value of what will be received through ownership of property, including…
A: At the marketplace, present value of a specific asset can be determined in different ways such as…
Q: Complete the following table with the quantity of labor supplied and demanded if the wage is set at…
A: Equilibrium in the labor market occurs at the intersection of demand and supply curves.
Q: Question: Using the following matrix, which strategy is the most beneficial to the population?
A: A payoff matrix contains the payoff structure for both the players in the population set - In the…
Q: The following are the cost information of a typical ice tea company in an industry with 100 firms.…
A: Answer - Marginal cost = It is the cost that firm need to incur to produce one extra unit of…
Q: Click to see additional instructions Suppose we estimate a regression of the gallons of paint sold…
A: 5 of 8 Estimated regression equation, in insights, an equation developed to show the connection…
Q: Q3. The law of diminishing returns applies only to businesses with very simply production. Your…
A: Q3. The law of diminishing returns applies only to businesses with very simply production. Your…
Q: Olympus has integrated many components into its SLR camera. Recently, Olympus has introduced a…
A: Non-price rivalry is a showcasing procedure "wherein one firm attempts to recognize its item or…
Q: What is the quantity supplied and demanded at P = 220? Excess supply or excess demand, which one…
A: Excess supply refers to a situation where the quantity supplied of a particular commodity is greater…
Q: Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been…
A: The formula to compute CPI (which represents "the overall change in consumer prices overtime based…
Q: Explain, with the aid of examples, the composition of the macro/remote environment. answer should…
A: Macro environment refers to all or any those external surroundings factors that vastly influence the…
Q: 2. The Lorenz curve of a particular society is given by L(x) = Ax? + Bx. Suppose that the poorest…
A: A graphical depiction of the distribution of wealth or income across a population is known as a…
Please answer fast please arjent help please answer
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?Y=C0+C1(Y-T)+I+G, C0=100 dollars, C1=0.8 (1) Suppose that tax collection (t) increases as much as 200 dollars. What would be its effect on national income? (2) Suppose that government expenditure (G) and tax collection (T) increases as much as 200 dollars, respectively. What would be its effect on national income?The table below shows the data for the country of Magnolia. Complete the national income accounting framework by filling in the missing data. Remember to enter a minus (-) sign to indicate negative values. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices 100 Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- net foreign factor income Net national product at basic prices 320 350 30 260 50 160 70 1100 220 100 -10 780 320 06 160 130
- The gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment will increase its GDP to $4.5trillion in year 2? (present your result in the nearest billion dollars, i.e., no decimal places) Assume that the average disposable income and consumption (in real $) of this country's citizen are provided in the table below. Year Income Consumption 1 60,000 50,000 64,726 51,25913. Consider the following hypothetical data for the U.S. economy in 2018 (in trillions of dollars) and assume that there was no statistical discrepancies or other adjustments. Profit 2.8 Indirect Business Taxes 0.8 Rent 0.7 Interest 0.8 Wages Depreciation Consumption Exports Government transfer payments Personal Income Taxes and nontax payments Imports Corporate Taxes and retained earnings Social security contributions Government spending 8.2 1.3 11.0 1.5 2.0 1.7 1.7 0.5 2.0 1.8 a. What is gross domestic income? Gross Domestic Income- Rent + Wages + Profit + Interest + Depreciation + Indirect Business a. What is GDP? GDP= Consumption + Gross Private Domestic Investment + Government Spending + Exports - Imports(a) Assume that Gross Domestic Product (GDP)/Total output (Y) is 6,000. Consumption (C) is given by the equation C = 600 + 0.6(Y – T) where T is the tax. Investment (I) is given by the equation I = 2,000 – 100r, where r is the real rate of interest, in percent. Taxes (T) are 500, and government spending (G) is also 500. What are the equilibrium values of C, I, and r?
- Consider the following table: GDP Depreciation Corporate earnings Transfer Payments Personal Tax Payments National income (NI) equals $ Personal income (PI) equals $ Disposable personal income (DPI)equals $ billion. (Enter your response as an integer.) billion. (Enter your response as an integer.) billion. (Enter your response as an integer.) Billions of dollars $13,300 1,500 1,250 600 1,000The following table shows the national income data for an economy in year 2020. ITEMS Dividends Interest on government loan Undistributed profit Gross interest Subsidies Corporate income taxes interest on consumer loan Indirect taxes Gross Domestic Product at factor cost Depreciation Wages and salaries Rent Corporate income before taxes You are required to calculate: (a) net interest. (b) corporate profit. (c) National Income. (d) Gross National Product at factor cost. Net factor income from abroad. RM (Million) 160 100 125 990 120 180 90 160 4,370 250 1,080 645 710Suppose that California imposes a sales tax of 10 percent on all goods and services. A Californian named Ralph then goes into a home improvement store in the state capital of Sacramento and buys a leaf blower that is priced at $200. With the 10 percent sales tax, his total comes to $220. How much of the $220 paid by Ralph will be counted in the national income and product accounts as private income (employee compensation, rents, interest, proprietors' income, and corporate profits)? $220 $200 $180 None of these are correct.
- (a) Assume Consumption (C) is given by the equation C = 500 + 0.6(Y – T). Taxes (T) are equal to 600. Government spending is equal to 1,000. Investment is given by the equation I = 2,160 – 100r, where r = the real interest rate = 13 percent. In this case, what is the equilibrium Gross Domestic Product (GDP)/Total output (Y)/Total income? How does the equilibrium income change if government designs and executes expansionary fiscal policy? Show graphically and mathematically.12- 12 - : “The document showing the income and expenses of the state together is called X.” In his statement, which of the following is most appropriate for X? a) national income B) Marginal revenue NS) purchasing power parity D) Budget TO) national income per capitaUsing the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Billions Compensation of employees U.S. exports of goods and services Consumption of fixed capital Government purchases Taxes on production and imports Net private domestic investment Transfer payments U.S. imports of goods and services $ 224.2 17.8 11.8 59.4 14.4 52.1 13.9 16.5 Personal taxes 40.5 Net foreign factor income Personal consumption expenditures Statistical discrepancy 2.2 249.1 0.0 Instructions: Round your answers to 1 decimal place. a. GDP = $ 373.7 billion in b. NDP = $ 376.3 billion c. NI = $ 378.5 billion