Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal: --- a) A large increase in the value of real estate, including private houses. b) A decline in the real interest rate. c) An increase in the rate of population growth. d) An increase in the Federal personal income tax.

Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal: --- a) A large increase in the value of real estate, including private houses. b) A decline in the real interest rate. c) An increase in the rate of population growth. d) An increase in the Federal personal income tax.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9WNG

See similar textbooks

Similar questions

Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:a. A large increase in the value of real estate, including private houses.b. A decline in the real interest rate.c. A sharp, sustained decline in stock prices.d. An increase in the rate of population growth.e. The development of a cheaper method of manufacturing computer chips.f. A sizable increase in the retirement age for collecting Social Security benefits.g. An increase in the Federal personal income tax.
Explain how each of this will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal: A sizable increase in the retirement age for collecting Social Security benefits.
Which of the following is an example of an investment or I when computing the real GDP______? A. B. C. D. A new furnace that I purchased to make my house more energy efficient. Computer chips by Dell to install in their personal computers. A 20 year old apartment building. The purchase of a new home by a married couple.
Explain how each of the following will affect the consumption and saving schedules (as they relate to GDP) or the investment schedule, other things equal:a. A large increase in the value of real estate, including private houses.
The following equations describe a small economy. Figures are in millions of dollars; interest rate (i) is in percent per annum. Assume that the price level (P) is fixed. Goods Market C = Co + cYD (Private consumption) YD = Y + TR – T (Disposable income) T = To + tY (Total taxes) I = Io – bi (Private investment) G = Go, TR = TRo (Gov. Expenditure and Transfers, respectively) Y = C + I + G (Goods mkt. equilibrium condition) Money Market L = kY- hi (Demand for real balances) Ms = Mo/P (Real money supply) L = Ms (Money mkt. equilibrium condition) Endogenous Variables: C, YD T, I, Y, L, Ms and i Exogenous Variables: Co = 300, To = 80, Io = 450, Go = 300, TRo = 100, Mo = 350, P =1 Parameters: c = 0.85, t = 0.15, b = 50, k = 0.25 and h = 62.5 Policy…
Explain why investment (I) varies more from year-to-year than consumption (C).
If U.S. government statistics counted education spending as part of the investment, which of the following would rise, which would fall, and which would remain unchanged? You might use rise, fall, and stay unchanged more than once each or you might not. Consumption Investment Gross domestic product
Which of the following would increase gross private domestic investment in an economy? Select one: A. An increase in the number of highway construction projects the government is funding. B. An increase in the level of Apple's inventory. C. An increase in the shares of Apple stock households own. D. An increase in the number of workers Apple hires.
Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars. Real GDP (Y) Consumption (C) Planned Investment (I) Government Purchases (G) Net Exports (NX) $15,000 $11,750 $1,500 $3,000 -$500 $16,000 $12,500 $1,500 $3,000 -$500 $17,000 $13,250 $1,500 $3,000 -$500 $18,000 $14,000 $1,500 $3,000 -$500 $19,000 $14,750 $1,500 $3,000 -$500 The equilibrium level of GDP is $ 18,000 billion. The MPC is (enter your response to two decimal places).
Please explain how a rise in the household saving rate can cause a fall in GDP?
Explain how the current level of investment depends on the following factors: 1) the current level of national income; 2) the current level of the interest rate; 3) the expected net profits in future time periods; 4) the expected interest rates in future time periods; 5) the current level of profit.
Give an example of a good that can be both an intermediate good and a final good. An intermediate good is good that is used up in the production of final goods and services. A final good is a good or service that is consumed by the ultimate user. We don't count intermediate goods towards GDP because their value is captured in the price of the final good. But when goods are consumed by the ultimate user they do count towards GDP. Describe the situations when the good you describe would be considered a final good and under what circumstances would it be considered an intermediate good. Your post should be 150-250 words long. Example: A tire for your car can be both an intermediate good or a final good. If you buy a new car for $10,000, then the tires that come with the car would be considered an intermediate good. The purchase price you pay for the vehicle includes the tires, the stereo, the fuel pump, etc., so we don't want to count those intermediate goods towards GDP because they…