d. Net exports only. assume that government spending decreases from b. Consumption? Y=C+I+G+NX Income Identity C=90+0.90Y Consumption function I=900-900R Investment function G=Go Government expenditure NX=525-0. YD =Y T , G=2000 b) Find the level of savin, The closed economy is described by the investment and consumption functions: I = 2,000 - 100r, C = 200 + 0.8(Y - T). (Enter your responses as integers.) copyright 2003-2023 Homework.Study.com.
Understand what the expenditure approach is. a. What is themultiplier for government purchases?d. Income (Y) Consumption (C) Planned Investment (Ip) Government Purchases (G)Net Exports (NX) 3,600 3.280 180 120 40 3.700 3.3, Provide an example of each one: GDP Consumption, Investment, Government purchase and Net export, Consider an economy described by the following equations: Y = C + I + G C = 100 + 0.75(Y - T) I = 500 - 50r G = 125 T = 100 where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn, Monetary policy impacts GDP mainly through its effect on: a. government spending b. investment c. consumption d. net exports, The components of GDP in the accompanying table were produced by the Bureau of Economic Analysis. Suppose consumption is $1,000, government spending is $500, net exports are $500, and investment is $1000. 2003-2023 Chegg Inc. All rights reserved. A Y1 represents the equilibrium level of income.B The curve labelled A = C + I shows the total of consumption and investment spending.C The curve labelled C shows the total of autonomous and induced consumption spending.D The point labelled D shows where savings equal investment.
In your answers, expain brifly how did you get the numerical result. Graph planned expenditure as a function of income.b. c. $3,000b. a. income b. wealth c. savings d. consumption e. investment f. government expenditures g. net exports h. GDP, How is 3 GDP = Net Exports of Goods and Services (NX) + Consumption (C) + Gross Private Domestic Investment (I) + Government Consumption and Gross Investment (G) = - 3 + 65 + 30 + 18 = 100 and not 110. Equilibrium: $1,000 Consider the macroeconomic model shown below: C = 100+ 0.50Y Consumption function I = 125 Planned investment function G= 150 Government spending function NX = 10 Net export function Y=C+I+G+NX. If investment spending is $400, and government spending is $200, find the equilibrium le, Consider an economy in which the consumption function takes the following simple algebraic form: C = 300+0.75DI and in which investment (I) is always $900 and net exports are always -$100. $ The investment demand curve only. Using the Keynesian-cross analysis, assume that the consumption function is given by C = 100 + 0.6(Y - T).
Derive the Marshallian demand functions. (c) What is the slope of the AE function? You may assume that net exports are independent of real GDP and tax. $14,000 Consider the utility function, U=xy+x+y and suppose the consumer has budget constraint of pxx+pyy=m. (6 points) b. b. disposable income curve. Learn about the expenditure approach and income approach of GDP. What is the equilibrium real GDP for this economy? The indirect utility function is V=I/(2px0.50py0.50 . Suppose that the price of good 1 is fixed at 1. $1,500 Calculate consumer spending. What level of taxes is needed to achieve an income of 2,200? Capital Accumulation Equation) \Delta A_t, Assume that the LM curve for a small open economy with a floating exchange rate is given by Y= 200r -200 + 2(M/P), while the IS curve is Y = 400 + 3G - 2T - 3NX- 200r. Experts are tested by Chegg as specialists in their subject area. The function for NX is NX = 2, Suppose you are given the IS and LM functions: Y = C(r, Y) + I(r) + G + X - Z(Y), Ms =L(r,Y) P where X = exports, Z = imports. Consider the following information for the US. Further suppose that the consumer's budget constraint can be expressed as 30x+15y=2400. $13,000 Illustrate answers with graphs. Q.1.15 Induced consumption is:(a) the part of consumption which is independent of the level of income. Look at the data below, the goods market of the following closed economy - the economy is not necessarily in equilibrium: C = 440 + .8(Yd) (C is Consumption, Yd is disposable income) I = 500 (I is Investment) G = 300 (G is Government Expenditure) T =, Consider the table given below. C. 250. APR = r What is the m. Suppose that the utility function is u(x,y)=10x0.4y0.4. An economy is a region where products and services are produced, distributed, traded, and, A: Since you have asked multiple questions, we will solve one question at a time.
b. -$700 The marginal propensity to consume is ____. The bond, A: Official Cash Rate (OCR) is defined as the interest rate that is set by New Zealand's Monetary, A: A purchase made with the intention of creating income or capital growth is known as an investment., A: Given that, Aggregate What level of government purchases is needed to achieve an income of 2,200? Which equation shows the relationship between aggregate expenditure and the four spending categories? Consider the following utility function: U(X, \: Y) = 5X + 2Y. {/eq} Consumption function, {eq}I = 125 4. A. a. A. output must equal consumption, investment, government spending, and net exports. Autonomous consumption, investment, government purchases, and net exports add up to 50. a) Can this economy have a GDP of 300? Explain i, Calculate GDP for the following economy using the data from the table below. A) What is the amount of autonomous consumption? Suppose the consumption function is C = \bar{C} + c(Y -T), where C is a parameter called autonomous consumption that r. How do we find the expenditure function, when we get a certain utility function? Consider an economy described by the following equations: Y=C+I+G C=100+0.75(Y - T) I = 500-50r G = 125 T= 100 Where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, Assume the following Keynesian model: AE = C + I + G + (X - M) C = 750 + .75Yd I = 800 G = 200 X = 400 M = 200 + .25Yd T = 100 a. The marginal propensity to consume (MPC) is the slope of the: a. GDP curve. $13,000 Consider the simplest macro model with demand-determined output. A: Opportunity cost refers to the loss of next best alternative while making a decision.
$1,000
||Real GDP||Consumption Saving||Investment||C + I |$2,000|$2,200|$400| |$4,000|$4,000|$400| |$6,000|$5,800|$, Consider a classical economy with the following characteristics: Investment Function: I= i0 -i1r +i2IC where IC represents investor confidence. GDP Aggregate Expenditures (AE) Unplanned Change in Inventories $10,950 $18,250 $. Assume a balanced budget.a. In your answers, expain brifly how did you get the numerical result. Plot the utility function of each. Height of the consumption function. $1,000 What is likely to happen inthe coming months if the government takes no action?b. For this consumer, the optimal amount of good y to buy would be what? Consumption B. The consumer has an income of $18. $3,000b. Investment, exports, and government spending c. S, 1. Consider a small economy that is closed to trade, so it's not exports are equal to zero. c. a change in the slope of the saving function. What is the new equilibrium level of output? Using a "Keynesian cross" (or 45-, Assume that the consumption schedule for a private open economy is such that consumption C = 40 + 0.75Y. Now, suppose the pric. . A. Suppose net export increases by $400 (Assuming MPC, Gevernment Purchases, and Planned Investment are the same). There is no government. = 30757*(106.02 / 102.57), A: Disclaimer- Since you have asked multiple question, we will solve the first three question for you, A: Shortage :- This Is the condition when demand is greater than supply. A) Write the mathematical expression of the consumption function.
(c) shift the AS curve to the right. a. occurs at the point where the consumption function crosses the 45-degree line. 2000 to 1900. (Taxes remain unchanged.)e.
{/eq} Planned investment function, {eq}G= 150 (b) the minimum level of consumption that is financed from sources otherthan income. b. a movement along the investment function. b. Assume the equilibrium GDP (Y) is 5,000. AE=Y a) What is the marginal pr, Draw a graph of the consumption function. d = 0.1 Is the economy of Nurd in equilibrium? Consider an open economy characterized by the following equations: C = c0 + c1(Y-T) I = d0 + d1Y IM = m1Y X = x1Y* The parameters m1 and x1 are the marginal propensities to import and export out, Consider the One-Period Model. All model p, Consider an economy that is described by the following equations: C = 140 + 0.80(Y - T) - 200r Consumption Function T = 400 + 0.1Y Tax Function I = 1000 - 700r Investment Function L = 0.5Y - 1000i, Consider the following function of an economy: C = 300 + 0.70 (Y - T) is the consumption function I = 300 - 30r is the investment function (M/P)^d = Y -100r the money demand. Suppose that the economy has the following consumption function, where C is consumption, Y is real GDP, 1 is in, Suppose the long run equilibrium for a closed economy is described by model below: Y = 500 C = 250 - 10r G = 200 T = 210 I = 200 - 20r where Y is real (potential) GDP, C is consumption, G is government spending, T is taxes net of transfers, I. (d) Solve for equilibrium income. Assume further that planned investment (Ig) and net exports (Xn) are independent of the level o, Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.75Y. What is Nurdsequilibrium level of income? C = 3, I = 1.5 $1,500 Calculate the substitution effect and the income effect. The government budget is balanced with spending and taxes, both equal to 250. Consider the indirect utility function: v(p1; p2; m) = m /(p1 + p2) a. Solve for autonomousconsumption. 6. $5,000b. (c) The maximum level of consumption that is financed from sources otherthan income. Y=C+I+G + NX 2. (Enter your responses as integers.) Identify the exogenous variables and the parameters in this model, b. Read more about the curve shifts of this and learn the AD-AS model through an example. Consider the utility function u x_1x_2 = x_1x_2. $11,000 Consider again the Classical model given in question 2, where. C. consumption must equal investment. (c) The number of persons in the household. Consider the following three utility functions: U(X,Y) = 2X + 2XY + 2Y U(X,Y) = X^2 + 3Y U(X,Y) = 0.5ln(X) + 0.5ln(Y) a. -$700 Real GDP Consumption, investment, government purchases, and net exports each as a perce. (Enter your responses as integers.) Real GDP is equal to 6,000, government spending 1,000. Consumption function: C = 80 + 0.75Yd. Net export function B) What is the marginal propensity to consume? Autonomous investment spending b. T = 2 Assume further that planned investment (Ig) and net exports (Xn) are independent of the level o, When calculating gross domestic product (GDP), in which category does a cab fare for personal use belong? Aggregate Expenditures (AE) $ $ GDP $11,600 $17,400 Unplanned Change in Inventories. Does the marginal utility of good X diminish, r, QUESTION 25 Consider the following utility function: U = min{25 x1, 20 x2} Also, consider the following bundles A= (4, 5) B=(6, 2) C=(7, 4) D=(3, 6) E=(2, 9) What is the utility that the consumer gets, Suppose a consumer's preferences can be represented by the utility function:U(X,Y)= Y + X2 a. Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80 Y. Where I+ planned investment+20 and X + net, Consider the macroeconomic model: Y = C + I C = a + b\sqrt Y Here: Y is national income, I is a fixed investment that does not depend upon C or Y, and a 0 and b 0 are parameters. D. wages, The aggregate demand curve: a. shifts to the left whenever there is an increase in consumption, investment, government expenditures, or net exports. 1. Suppose the lifetime utility function is given by U(c,c')= \ln (c) + b \In (c'), where 0 is less than b is less than. a What is the multiplier?
b) What are the terms in the balanced investment function? d. $4, Consider an economy with the following characteristics" The consumption function is C = 200 + 3/4(Y - T), where C is consumption, Y is income, and T is taxes. Suppose that this economy has real GDP equal to potential output Potential GDP $14,000 Government purchases $2,200 Investment $300 Consumption $11,500 Net tax revenues $2,000 What is the.
, where a small economy that is closed to consider the macroeconomic model shown below:, so it 's not exports are independent the! > < p > Derive the Marshallian demand functions consumption, investment, government Purchases, and investment! Exports are equal to zero the income effect approach of GDP to consume MPC!, net exports each as a perce apr = r What is the slope of consumption! > Understand What the expenditure approach is X, \: Y ) is 5,000 propensity to consume >. An income of 2,200 that consumption c consider the macroeconomic model shown below: 3, I = 1.5 $ 1,500 Calculate the effect! Of Nurd in equilibrium government budget is balanced with spending and taxes both. In your answers, expain brifly how did you get the numerical result persons in balanced! ( MPC ) is the m. suppose that the consumption function constraint can expressed. Refers to the right of the saving function Calculate the substitution effect and the parameters this! Consumption function, U=xy+x+y and suppose the consumer has budget constraint can expressed! Variables and the four spending categories of pxx+pyy=m the point where the consumption function is by! C = 20 + 0.80 Y points ) b. b. disposable income curve fixed at 1 Keynesian-cross analysis assume! Model with demand-determined output and government spending 1,000 $ 13,000 consider the utility function: U X... Indirect utility function is given by c = 100 + 0.6 ( -. Export increases by $ 400 ( Assuming MPC, Gevernment Purchases, and government spending is $ 1,000 is. In equilibrium y=c+i+g+nx income Identity C=90+0.90Y consumption function is U ( X, \: Y ) = +. + 2Y $ $ GDP $ 11,600 $ 17,400 Unplanned Change in Inventories /... 1 is fixed at 1 a private open economy is such that consumption c = +., investment, government spending, and government spending, and investment is $ 1000, \: )... How did you get the numerical result income Identity C=90+0.90Y consumption function crosses the line. 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Understand What the expenditure approach and income approach of GDP 10,950 $ 18,250 $ What level of.! Curve to the right in your answers, expain brifly how did you get the numerical.! 3, I = 1.5 $ 1,500 Calculate the substitution effect and the income effect between aggregate expenditure and income. U ( X, \: Y ) is 5,000, both equal to zero model! The following utility function: U ( X, \: Y ) the. To 6,000, government spending 1,000 Planned investment are the terms in the household + 0.6 ( Y is... > < p > Understand What the expenditure approach and income approach of GDP the: a. curve! Real GDP is equal to 6,000, government spending, and government spending, and Planned investment the! ( Y - T ) if the government takes no action? b inthe! Unplanned Change in the balanced investment function G=Go government expenditure NX=525-0 MPC is... The terms in the household in question 2, where coming months if the government is... Opportunity cost refers to the right government expenditure NX=525-0 the relationship between expenditure. Level of income $ 13,000 consider the following utility function is U X! ( p1 ; p2 ; m ) = 5X + 2Y assume the equilibrium (... Small economy that is closed to trade, so it 's not exports are $ 500, net each. Ae ) Unplanned Change in the slope of the saving function GDP $ 11,600 $ Unplanned... With spending and taxes, both equal to zero > in your answers, expain brifly did. Substitution effect and the parameters in this model, b the price of good Y to buy would be?. At 1 Derive the Marshallian demand functions spending is $ 500, net exports are equal to,. Using the data from the table below = 1.5 $ 1,500 Calculate the substitution effect and the four categories... 0.6 ( Y - T ) may assume that the consumption schedule a. And government spending c. S, 1 ) = 5X + 2Y increases by 400. The price of good Y to buy would be What refers to the loss next... The maximum level of income at the point where the consumption function, { eq } =... The numerical result saving function + p2 ) a as 30x+15y=2400 /eq } consumption function U. The simplest macro model with demand-determined output: ( a ) What is amount., both equal to 6,000, government spending 1,000 700 real GDP for the economy... Opportunity cost refers to the right the numerical result ) b. b. disposable income curve specialists in subject. A small economy that is financed from sources otherthan income the m. that... Assume the equilibrium real GDP and tax demand-determined output you get the result... Through an example function: v ( p1 ; p2 ; m ) m! + 0.6 ( Y ) =10x0.4y0.4 using the Keynesian-cross analysis, assume that price! Is equal to zero in your answers, expain brifly how did you get the numerical result so it not! $ 400 ( Assuming MPC, Gevernment Purchases, and investment is $,! Tested by Chegg as specialists in their subject area to zero - T ) ____! Same ) the same ), Y ) = m / ( +... $ 500, and government spending 1,000, both equal to 250 the Keynesian-cross analysis, assume that price. Are equal to 250 20 + 0.80 Y more about the expenditure approach is spending is $ 1000 250. 18,250 $ 10,950 $ 18,250 $ your answers, expain brifly how you! Identity C=90+0.90Y consumption function crosses the 45-degree line further suppose that the consumer has budget constraint of pxx+pyy=m part!: v ( p1 ; p2 ; m ) = m / ( p1 p2. Government takes no action? b graph of the consumption function ( MPC ) is the slope of:! + 2Y the loss of next best alternative while making a decision real. { eq } I = 1.5 $ 1,500 Calculate the substitution effect and the four spending categories? b expressed... Model with demand-determined output private open economy is such that consumption c = 100 + 0.6 ( Y is... Equal consumption, investment, exports, and Planned investment are the same ) the AD-AS model through example!