Suppose the government increased spending 25,000,000, that there is no crowding out, and that marginal propensity to consume is 0.8. What is the change in GDP that results from this increase in government spending? (Use a positive number if GDP goes up and a negative number if GDP goes down)
Q: In a function particular county in California, the demand function for each person i for a…
A: Individual demand function: Qdi=150+0.15×Ii-5P Supply function of a single firm:…
Q: Instructions: Use the Mark Line tools to find the quantities demanded and supplied at the $7 minimum…
A: Minimum wages refers to the minimum legal remuneration that an employer must pay the workers during…
Q: which of the following could be the percentage of revenue in Arla Foods that is from new products…
A: a) 8.23%: This option suggests that 8.23% of Arla Foods' revenue is derived from new products. This…
Q: A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10,…
A: Marginal product refers to an additional item produced as a result of adding an extra unit of input.…
Q: 1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Calculate the present worth of a geometric gradient series with a cash flow of $42,000 in year 1 and…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Calculate the reserve requirement if the money multiplier is equal to 14 and banks hold no excess…
A: Money multiplier is an expression in monetary economics that is an event of creating money in the…
Q: Referring to the blue yield curve below, which theories of term structure can be used to explain the…
A: Yield curve: is a graphical representation of the relationship between bond yields and their…
Q: ) Suppose there are two inputs in the production function-labor and capitaland that these two…
A: Production is an important economic component because it creates value to the economy by putting…
Q: Suppose that there are only two fisherman, Zach and Jacob, who fish along a certain were built along…
A: The lighthouse is the public good and its benefits are not limited to the single individual who pays…
Q: Major overhaul expenses of $5000 each are anticipated for a large piece of equipment. The expenses…
A: Net present value is the present value of the cash flows at the required rate of return of the…
Q: QUESTION 1 Firms A, B, and C were all selling 1,000 cups of coffee per day at $3.50 per cup, but in…
A: COGS stands for "Cost of Goods Sold". It refers to the direct costs incurred in producing the goods…
Q: At equilibrium expenditure, unplanned changes in inventory O must be negative. might be either…
A: Aggregate expenditure is the sum of consumption, investment, government expenditure and net exports.…
Q: The change in a commodity's price p(t) is proportional to the excess demand for the commodity. If…
A: Excess demand refers to the difference between the quantity of a good or service that consumers are…
Q: What is the benefit of international trade. Answer in reference to the U
A: The exchange of commodities and services across international borders is referred to as…
Q: 5- According to the cash flow diagram below, for the case where the cost of capital is 25%;…
A: Present worth is a financial term that refers to the value of a future amount of money in today's…
Q: Subtracting the value of a bank's liabilities from the value of its assets leaves its O A. deposits.…
A: The financial resources that a bank has at its disposal to support its operations and fulfill its…
Q: Consider the following sequential game. Player 1 plays first, and then Player 2 plays after…
A: Nash equilibrium is a concept in game theory where each player in a game makes the best decision for…
Q: 5. Using money creation to pay for government spending Consider Arcadia, a hypothetical country that…
A: Government spending in the economy creates a money supply that raises the demand of the economy. The…
Q: The following table exhibits the name, gender, height, and minimum wage 10 people are willing to…
A: The demanded quantity of any commodity reflects the amount of that commodity an individual is…
Q: Suppose we have 2 firms competing on quantity in a homogenous-goods market. The market inverse…
A: In Cournot Competition, there are 2 firms that play simultaneously on quantities. Given : Market…
Q: Consider the competitive market for ruthenlum. Assume that no matter how many firms operate in the…
A: Market demand means the quantity of goods that all the consumers in a market are willing and able to…
Q: 16. You are the CEO of Comchip. Each of the firm's computers contain a unique chip that is produced…
A: Total cost is the total expenses incurred by a firm while producing goods or services. It is the…
Q: Commercial banks have a target reserve ratio of 30 percent and there is a cash drain of 20 percent.…
A: The reserve ratio is the percentage of deposits that banks are required to hold in reserve, either…
Q: 1. What is money? Discuss the characteristics of money as medium of exchange, unit of account, store…
A: In today's world, if we discuss about the simplest way of exchange, the first thing that comes to…
Q: A long-run supply curve is flatter than a short-run supply curve because a) competitive firms have…
A: A supply curve shows relationship between price and quantity supplied of a commodity.
Q: The demand function for a particular vacation package is p(x) = 3,000 43√x. Find the consumer…
A: Consumer surplus refers to the difference between the maximum price that a consumer is willing to…
Q: d) Calculate the real GDP using 2005 prices for each of the three years. W
A: GDP is the gross domestic product. GDP is the market value of all the goods and services produced…
Q: The following graph shows the labor market in the fast-food industry in the fictional town of…
A: Price floor means a minimum wage is set above equilibrium wage rate such that the quantity supplied…
Q: Question 3 Q = -8P, +2000 Q = 12P, -200 i. ii. Re write the above function in their inverse form…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: As the manager of Smith Construction, you need to make a decision on the number of homes to build in…
A: When the gap between total revenue and total costs is as large as possible, profit is maximised.…
Q: 3. Capital labor ratio is denoted by the equation K/L where K=capital and L=labor. If the total…
A: Capital-labor ratio refers to the amount of capital per unit of labor input in a production process.…
Q: What is the required reserve ratio? A) The suggested percentage of total deposits that a bank should…
A: The required reserve ratio (RRR) refers to the proportion of deposits that banks are legally…
Q: For each of the following situations, use the IS-LM-FX model to illustrate the effects of the shock.…
A: The IS-LM-FX model is an extension of the standard IS-LM model that includes the foreign exchange…
Q: From the data shown, determine the ESL of the asset. (Note: Values in the table are AW values, not…
A: Use the below formula to find the net AW: Net effective AW for every year=AW of First Cost + AW of…
Q: Suppose that widgets can be produced using two different production techniques, A and B. The…
A: There are two production techniques, A and B Input requirement for each level of output is given…
Q: Currency Checking Account Balances Savings Account Balances Small-Denomination Time Deposits…
A: A central bank, which is the ultimate monetary authority in virtually all nations, uses a variety of…
Q: Suppose that in the short run perfectly competitive firms earn $1,250 in economic profit. Would we…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: Write an essay and provide a detailed examination of each of the forms of price discrimination.
A: Price discrimination is a price strategy of firms under which they charge several prices for the…
Q: :Which of the following statements is/are true? a) The LM curve is vertical if money demand does not…
A: The IS/LM curve can be defined as the graphical model that defines relation among interest rate and…
Q: The following table gives the quantity of money demanded at various price levels (P), the money…
A: The money demand curve is downward sloping. The money supply in the economy is set by the central…
Q: 5. What are the functions of money? (check all that apply) A) A medium of exchange B) A unit of…
A: Any widely used medium of exchange for goods and services in an economy is referred to as money. It…
Q: Consider two firms engaged in Cournot Competition. The market demand curve is P = 50-2Q where…
A: The firms compete on the basis of output in the Cournot competition. The reaction functions of each…
Q: Many would argue that the federal government’s response to the financial crisis of 2008 favored…
A: Financial crisis means decrease in the value of assets and instruments. This affect businesses very…
Q: Producer–producer rivalry functions Multiple Choice regardless of the number of sellers.…
A: Rivalry means that these goods can be consumed or occupied by an individual only, there is…
Q: During a back-to-school shopping frenzy, a price ceiling of $6 is put on a pack of pencils.…
A: The equilibrium is where the quantity demanded is equal to the quantity supplied. The price ceiling…
Q: Suppose you are making the following contributions to your bank account a- From year 1 to year 6,…
A: Given the below: Deposits from year 1 to years 6 = $10,000 Deposits from year 7 to years 12 = $5,000…
Q: In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant…
A: Market clearing condition meand to the equilibrium point in a market where the quantity supplied is…
Q: 4. What components of money are counted as part of M1? A) currency, M2 and checking accounts. B)…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To…
A: NET PRESENT VALUE Net Present Value is one of the important capital budgeting technique. Net…
A 169.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 1. If imports are $2 trillion, exports are $1.9 trillion, consumption is $3.8 trillion, investment is $700 billion, and government spending is $1.1 trillion, how much is GDP? 2. If consumption is $2.5 trillion, investment is $900 billion, government spending is $700 billion, imports are $1.2 trillion and exports are $1.4 trillion, how much is GDP? Example: If GDP rises from $6 trillion in 1994 to $8 trillion in 1999 and the GDP deflator in 1999 is 110, find real GDP in 1999 and find the percentage increase in real GDP between 1994 and 1999. First, we are asked to find real GDP in 1999. To do this we divide the nominal GDP, which is $8 trillion ($8,000 billion), by the GDP deflator for 1999, which is 110. This then is multiplied by 100. Real GDP in 1999 is $7,273 billion or $7.2 trillion. To find the percent change you must find the difference of real GDP between 1999 and 1994. Change in GDP = 7,232 – 6,000 = 1,232 You then take this difference and divide it by GDP in…不 Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes and that there are zero taxes. (Enter all values as whole numbers.) Real GDP () Consumption (C) Planned Investment (/) Government Purchases (G) Net Exports (NX) $15,000 $10,500 $1,500 $1,300 - $375 $16,000 $11,200 $1,500 1,300 - $375 $17,000 $1,500 1,300 - $375 $18,000 $1,500 1,300 - $375 $19,000 $ $1,500 1,300 - $375C= 1000+ 0.8(Y-T), 1 = 500, G=800, T = 500. Suppose that government spending FALLS by 200. What is the change in equilibrium GDP? (Round your answer to the nearest whole number, and do not use commas in your answer.)
- 17. Suppose MPC = 0.6, and G increases by $350 and Tax increases by $350 simultaneously. How much would GDP change? (NOTE: Refer to your answers from #14 & #15) 18. Suppose MPC = 0.8, and the government intends to increase GDP by $300. To achieve the goal, tax must (increase decrease ) by $How do budget surpluses and budget deficits affect the consumption and investment components of GDPSuppose you have the following information about a fictitious economy. Assume there are no taxes in this economy. Disposable Income and Consumption Disposable Income Consumption (dollars) $12,000 20,000 28, 000 (dollars) 12,000 24,000 36,000 36, 000 48, 000 44 ,000 60, 000 52,000 Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answers to 2 decimal places. a. What is the equilibrium level of consumption? b. What is the MPC and MPS for this economy? MPC: MPS: c. What is the value of autonomous consumption for this economy?
- Suppose an economy with the following characteristics.Y = Real GDP or national incomeT = Taxes = 0.3YC = Consumption = 140 + 0.9(Y – T)I = Investment = 400G = Government spending = 800X = Exports = 600M = Imports = 0.15YGiven the information above What is the equation for Aggregate Expenditures (AE) in this economy?You are told that taxes in this economy are equal to 100. What is the value of autonomous consumption? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (1') Purchases (G) (NX) Expenditures (AE) Inventories 1500 1100 250 1600 1175 100 1700 1250 1800 1900 2000 75 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 50 75 100 d. 125In the economy of Kwartengland, the following figures are given for economic activity which was undertaken in 2013. All the figures are million Ghana Cedis Consumption Expenditure = 1000 + 0.8 YD Investment Spending= 600 Government Expenditure = 2450 Personal Taxes= 100 Exports= 100 Imports= 150 1. Calculate the investment and tax multipliers 2. By how much should exports change if government wishes to increase real GDP by 1000?
- 2) GDP (Y) = $1,200, consumption (C) = 150, exports (X) = 50, investment (I) = 125. What is government spending (G)? (Assume M= 0) (Show your math calculation)suppose the government wishes to illuminate recessionary of a gdp of 100 billion in the MPC is .075. How much must the government increase in spending? Instead of increasing government spending by the amount you calculated what would be the effect of the government decreasing taxes by this amount explain?Suppose a government collects $12 billion in various tax revenues and pays $2.5 billion in debt interest, $9 billion in social security benefits and $0.5 billion in government employee wages. What is the direct contribution to GDP coming from this government's fiscal actions? a. $3.0 billion. b. $0.5 billion. C. $11.5 billion. d. $2.5 billion. e. $12.0 billion.