The following data characterises the macroeconomic conditions of a hypothetical еcoпотy: C = 50 + 0.8 Ya I = 100 G = T=75 where C, I, and Y,are consumption, investment and disposable income respectively. Calculate equilibrium income of the economy. What is the value of multiplier?
Q: Using the supply and demand functions below, derIve the demand and supply curves if Y = $55,000 and ...
A: Given:- Demand, Q=8.5-P+0.01Y Supply, Q=9.6+0.5P-0.2Pc Y=$55,000(thousand) Pc=$13 Please find the im...
Q: What happens to employment in country A after minimum wage is introduced?
A: Labor Force refers to the total number of workers that are willing to work at the given wage levels ...
Q: Consider a strategic interaction between firms 1 and 2. In Stage 1, firm 1 chooses the level of adve...
A: Aggregate demand function : P = 6a - q1 - q2 In a simultaneous profit maximizing game both firms ...
Q: Susan has the option to purchase eyeglasses, E, $3 each, and orange juice,O, $1 each. Her income is ...
A: Equation for budget constraint: PX * X+ PY * Y = M where, PX and PY are the price of goods on X and ...
Q: 2. Assume the following equations summarize the structure of an economy. C=Ca+0.85 (Y –T) C2= 260 – ...
A: We have Consumption function: C=Ca+0.85Y-T Autonomous consumption is the function of interest...
Q: Which of the following describes a characteristic of banks? O a) Banks are the only type of financia...
A: Financial intermediaries refers to organisations that channel from savers to borrowers.
Q: .At a certain interest rate compounded annually, P100,000 will become P450,000 in 15 years. What is ...
A: We have given that Present value P =100,000 Value after 15 years =P450,000 We have to find value at...
Q: Joe is a college football player considering whether to attend another year of college or to enter t...
A: When talking about marginal analysis in economics, it refers to analyzing the cost and benefit assoc...
Q: Player 2 L 1,0 0,1 Player 1 0,1 1,0 Suppose Player 2 is using the following strategy: she plays L wi...
A: In-game theory, there are many distinct sorts of tactics, and they all revolve around the player's a...
Q: An inventor found a new way to produce more steel from each ton of her country’s iron ikr. How would...
A:
Q: What were other sources of economic growth besides slavery?
A: Economic Growth is the increase in the output or production of goods and services in the country dur...
Q: why economic development is important in the study of business management?
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the econom...
Q: The inverse demand for tea is given by P= 12 - 0.03Q, where P is the price per a gram of tea and Qis...
A: Equilibrium price is achieved when marginal cost is equal to marginal revenue for firms . This condi...
Q: Pranav's household consumes 1,000 litres of gasoline per year. After $0.15 gasoline tax was introduc...
A: Answer -
Q: 2. Assume the following equations summarize the structure of an economy. C=C,+0.85 (Y - T) Ca = 260 ...
A: Planned expenditure: Ep = C + Ip + G + NX => Ep = Ca + 0.85(Y-T) + 1500 - 30r + 1700 + 500 - 0.08...
Q: Consumer has utility function ln(c1)+beta*ln(c2), where beta=1. Interest rate i=50%. Income y1=10 ...
A:
Q: IT Anna WIll take one 1d only Jobs, oppor rtuni Ity of
A: Opportunity cost : It is the potential benefit that an individual, producer or investor misses out w...
Q: If the marginal propensity to consume of an economy is 0.7, then the simple spending multiplier is:
A: Marginal propensity to save is defined as that proportion of the aggregate increase in income which ...
Q: Explain why each of the following statements is True, False, or Uncertain according to economic prin...
A: In an economy, when analyzing the international bete goods market and money market, IS-LM model is u...
Q: 2) If the expected return on U.S. T-Bonds falls from 3 to 2 percent and the expected return on corpo...
A: Given, The expected return on U.S. T-bonds changes from 3 to 2 percent and The expected return on co...
Q: Use the following graph (shifts in the supply of loanable funds) for the next five questions. Intere...
A: Supply refers to the amount of a resource that businesses, producers, laborer's, financial asset pro...
Q: QUESTION 5 If the error terms of a linear regression model exhibit heteroscedasticty, which of the f...
A: If the error terms of linear model is not homogeneous then we have the problem of heteroscedasticity...
Q: In an economy with high unemployment, the central bank has room to decrease the interest rate. Polic...
A: In an economy, when talking about interest rate, it is considered as the cost to a borrower who borr...
Q: A chemical plant worth P 110M has an estimated life of 6 years and a projected scrap value of P 10M....
A: A decrease in the book value of fixed assets is known as depreciation. The loss of value of assets d...
Q: DRAW CASH FLOW DIAGRAM Suppose that P 4500 is deposited each year into a bank account that pays 8% i...
A: A series of money paid at regular intervals is known as an annuity. Monthly savings account deposits...
Q: A long run total cost curve a. must be equal to zero when output is zero cross out b...
A: In the mentioned question we have been asked what will be the value of long-run total cost if the ou...
Q: As a shareholder of a Construction firm, it has been decided by the Board to purchase a new 18- whee...
A: Given the present purchase cost of truck = $60000Time = 12G = $400Annual expense = $18000Salvage val...
Q: In your response, be sure to address all parts of the question. Use complete sentences; an outline o...
A: Laissez-faire is a economic hypothesis is a strategy of least government obstruction in the financi...
Q: Is there hope for a country to grow in economy
A: Growth Rate: The magnitude of the growth rate can be determined by dividing the absolute change by t...
Q: a. Carefully explain why the basic framework of supply and demand is not sufficient to analyze the m...
A: Predominantly, under the gamut of microeconomics is the underlying behavioural theory of individual ...
Q: Consumer has utility function In(c1)+beta*In(c2), where beta=1. Interest rate i=0%. (NOTEI) Income y...
A: Answer: Given, Utility function: U=lnc1+beta×lnc2substitute, beta=1U=lnc1+1×lnc2U=lnc1+lnc2 Interest...
Q: the difference between gross income and disposable income. the percentage reduction in taxes due to ...
A: Average Propensity to Save can be defined as the amount of the disposable income that is saved. It i...
Q: Countries with higher levels of real per capita gross domestic product (GDP) tend to have O a) longe...
A: Per capita GDP is defined as the metric under which a country's output per person is calculated by d...
Q: Economic theories about growth a) are mainly used for teaching. O b) have had no influence on govern...
A: Economic theory is a theory that simplifies the reality of an economy to make predictions about the ...
Q: Year Price of a pound of Bacon (10 units) Price of a dozen Eggs (15 units) Price of a pound of Coffe...
A: The market basket includes 10 units of Bacon, 15 units of Eggs, and 20 units of coffee. Bacon is mea...
Q: Discuss How is Economic Development related to human rights issues.
A: Human rights implies freedom of rights which again implies equal access to education and health that...
Q: ABC
A: The Consumer Price Index (CPI) is a measure of an economy's overall price level. The CPI is made up ...
Q: 6. Because of the peso devaluation, a car costing P150,000 is to be purchased through a finance comp...
A: The loan is taken from the financial firm in order to buy an asset.The financing firm enables the bo...
Q: f a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the s...
A: From the graph, The demand curve passes through (0, 26) and (8,18) and the supply curve passes thro...
Q: A person in the U.S. with a stable job making $100,000 can get a loan to buy a new car at about 4% (...
A: Nominal interest rate is the cost of borrowing . And it is given on the basis of ability to pay the...
Q: 4. Compare the accumulated values at the end of 5 years if P100,000 is invested at the rate of 12% p...
A: Interest rate is income earned on the amount invested for certain period compounded. In this case ea...
Q: 1. To set up wastewater plants and connect the trailer and low-income households to the nation's sew...
A: Cost-benefit estimation is a long-deployed economic strategy that endeavours to provide a synopsis o...
Q: Lecture question 4.What is the 2008 peak price in today's dollars? Nominal price CPI July 2008 Febru...
A: Consumer price index is the index shows the average price changes of goods and service shows the liv...
Q: Consider a firm for which production depends on two normal inputs, labor and capital, with prices w ...
A: (a) The change effect reflects the company's change in the input combinatioñ due to the change in th...
Q: QUESTION 4 Neverland is a closed economy that severed all links to the outside world. Its economy ca...
A:
Q: 9. In general, elasticity is a measure of a. the extent to which advances in technology are adopted...
A: When talking about elasticity in economics, it is the measurement tool used at the marketplace to an...
Q: A price floor isfitis set the manke pice O binding above O inding below 0 eficient; above O eficient...
A: Price floor is the minimum price that must be paid to sellers. Price cannot fall below this level.
Q: A regional infrastructure building and maintenance contractor must decide to buy a new compact horiz...
A: Given:- System cost=$68,000 Estimated or purchased now=$81,000 i=12% f=5% Please find the images att...
Q: QUESTION 1 S+M $75 50 $120 200 240 320 GDP In equilibrium in the above private open economy: O expor...
A: Net export:- Net exports can be explained as a metric for a country's overall trading. The calculati...
Q: How much money would you have to deposit for 5 years consecutive years starting one year from now if...
A: We have given the following cash flow
Step by step
Solved in 3 steps with 2 images
- What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?The table shows disposable income and saving in an economy. Calculate consumption expenditure at each level of disposable income. Over what range of disposable income is there dissaving? Estimate the level of disposable income at which saving is zero. >>> Answer to 1 decimal place. Disposable income 0 (trillions of dollars) Saving 10 20 30 40 53--35 50 5 When disposable income is $30 trillion, consumption expenditure is $ trillion.A Moving to another question will save this response. Question 12 Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Yis disposable income. At $1,100 level of disposable income: (show your calculations) a. Find out the level of saving and consumption? b. How much are the APC and APS (to one decimal place)? ( c. If disposable income increased to $2,800 and saving is $345 now. What are MPC and MPS (to two decimal places)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt A V 血 x² X2 深| T [区 田田 田E图|言()
- 5. Consider the following is the economy of Country Z: C = 200 + 0.85Y I= 100 Answer the following questions: (a) Calculate the equilibrium level of output algebraically using the saving-investment (S-I) approach. (b) What is the value of saving at the equilibrium output from part (a)? (c) Suppose the investment increases to 200. What is the new equilibrium level ot output? Calculate the value using the multiplier approach.Assume that the unintended investment is negative. Briefly outline how the level of Ye will change in response to this. how is the impact of change related to the size of the multiplier?5. Consider the following is the economy of Country Z: C = 200 + 0.85Y I = 100 Answer the following questions: (a) Calculate the equilibrium level of output algebraically using the saving-investment (S-I) approach. (b) What is the value of saving at the equilibrium output from part (a)? (c) Suppose the investment increases to 200. What is the new equilibrium level of output? Calculate the value using the multiplier approach.
- 25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above OSuppose you have the following disposable income and consumption data for a country, as shown in the table below Disposable income and Consumption BENp e e (dllar 13,000 227,000 3,400 E4,300 1,000 AUsing the information in the table, graph the consumption schedule for this country Instructions Use the tool provided C' to plot the consumption line polnt by point points total. Use the tool Equnibrium to indicate where consumption equals disposable income. Consumption Schedule Conumption (dollarn) 21.000 lave 27000 26000 25000 24.000 23,000 22,000 21000 20,000 20,000 22000 26.000 24.000 28,000 Disposable income (dollars) &What is the stope of the consumpton schedule? Instructions Round your answer to 1 decimal place12:15 e itc.birzeit.edu 1-Complete the accompanying table. Level of output and income Consumption Saving АРС (GDP = DI) $110 -$15 135 180 15 205 30 230 45 255 60 280 75 305 90 330 105 (a) What is the break-even level of income? How is it possible for households to dissave at very low-income levels? (b) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income. II
- 100 gaia 270 200 130 60 450 100 200 300 Aggregate income (Y) Figure 8.3 ?Refer to Figure 8.3. Which of the following statements is true „Aggregate saving is negative for all income levels below $400 a O For all aggregate income levels above $200, aggregate consumption is greater than aggregate income b O If consumption is the only expenditure, this economy would be in equilibrium at an aggregate income level of c O $300 Saving is negative at all income levels below $200 d O Aggregate consumption (C)Assume the following consumption schedule: C= 20 + 0.9 Y, where C is consumption and Y is disposable income. At $1,100 level of disposable income: (show your cacuators) a. Find out the level of saving and consumption? b. How much are the APC and APS (to one decimal place)? c. If dispr able income increased to $2,800 and saving is $345 now. What are MPC and MPŚ (to two decimal places)?The following questions refer to this table: a.At each level of output, calculate saving. At each level of out-put, calculate unplanned investment (inventory change).What is likely to happen to aggregate output if the economyproduces at each of the levels indicated? What is the equilib-rium level of output?b.Over each range of income (2,000 to 2,500, 2,500 to 3,000, andso on), calculate the marginal propensity to consume. Calculatethe marginal propensity to save. What is the multiplier?c.By assuming there is no change in the level of the MPC andthe MPS and planned investment jumps by 200 and is sus-tained at that higher level, recompute the table. What is thenew equilibrium level of Y? Is this consistent with what youcompute using the multiplier?