Consumption per period (billions of dollars) $1,600 1,400 Consumption 1,200 1,000 800 400 200 $400 800 1,200 1,600 2,000 2,400 Disposable personal income per period (billions of dollars) Reference: Ref 11(26)-3 Figure: Consumption and Disposable Personal Income (Figure: Consumption and Disposable Personal Income) Use Figure: Consumption and Disposable Personal Income. When disposable personal income is $2,000 billion, consumption is billion.

Consumption per period (billions of dollars) $1,600 1,400 Consumption 1,200 1,000 800 400 200 $400 800 1,200 1,600 2,000 2,400 Disposable personal income per period (billions of dollars) Reference: Ref 11(26)-3 Figure: Consumption and Disposable Personal Income (Figure: Consumption and Disposable Personal Income) Use Figure: Consumption and Disposable Personal Income. When disposable personal income is $2,000 billion, consumption is billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bureau of Economic Analysis Table 1.1.6. Real Gross Domestic Product, Chained Dollars [Billions of chained (2012) dollars] Seasonally adjusted at annual rates Last Revised On: Mar 26 2020 8:30AM-Next Release Date: Apr 29 2020 8:30AM Line 123 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Gross domestic product Personal consumption expenditures Goods Durable goods Nondurable goods Services Gross private domestic investment Fixed investment Nonresidential Structures Equipment Intellectual property products Residential Change in private inventories Net exports of goods and services Exports Goods Services Imports Goods Services Government consumption expenditures and gross investment Federal National defense Nondefense State and local Residual 2018 18,638.2 12,944.6 4,583.3 1,685.7 2,909.6 8,388.1 3,360.5 3,293.4 2,692.3 540.9 1,255.3 901.6 602.9 48.1 -920.0 2,532.9 1,782.8 755.4 3,453.0 2,916.1 539.9 3,223.9 1,232.2 737.5 494.2 1,990.0 2.1 2019 19,073.1 13,280.1 4,754.6…
3. Complete the accompanying table. (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels? Level of output and income (GDP = DI) Consumption Saving MPS АРС APS MPC S182 -$5 207 232 257 10 282 15 307 20 332 25 357 30 382 35
Consumption per period (trillions of dollars) $6 Consumption 4 2. 5 6 7 Real GDP per period = disposable 1 2 3 4 9 10 personal income per period (trillions of dollars) Reference: Ref 11(26)-1 Figure: Consumption and Real GDP (Figure: Consumption and Real GDP) Use Figure: Consumption and Real GDP. If real GDP is $4 trillion, consumption is trillion.
Question 16 (Billions of Dollars) Yd $200 200 350 400 500 Which of the following represents the consumption function consistent with the data in the above table? 150 + 0.8Yd 200 + 0.75Yd 150 + 0.25Yd 200 + 0.2Yd
3. Complete the accompanying table. (a) What is the break-even level of income? How is it possible for households to dissave at very low income levels? Level of output and income (GDP = DI) Consumption Saving АРС APS MPC MPS $205 2$ -$5 230 255 5 280 10 305 15 330 20 355 25 380 30 405 35
2. The supply of saving Suppose that Maria receives a pay raise of $1,050 per year. She can either use the extra money to consume goods and services, or she can save it by depositing it in a bank. For each of the alternative annual interest rates in the following table, indicate how much interest Maria would earn per year on her annual raise if she saves it. (Note: Assume that no income taxes are deducted.) Interest Rate Interest Earned (Dollars) (Dollars) (Percent) 8 20 A lower interest rate gives Maria incentive to save. The following graph shows a variety of possible curves representing the supply of saving.
1. There is a country, which is located in the south of the Mediterranean. This country's GDP is 500 billion USD and the population is 40 million. The total Used Electric Power capacity is 50 GW, the energy mix (electrical energy produced in one year by each primary source) is as follows; Hydro = 25 %, Photovoltaic = 5%, Wind = 10 %, Natural Gas = %40 and Coal = 20% a) Calculate the produced electrical energy by each primary sources for one year. b) Calculate the electrical energy consumed per capita and compare it with Europe average. c) The Electrical energy is 1/3 of the total energy consumed (TPES) in this country. Obtain the Energy intensity. d) Calculate the total CO₂emissions in one year while producing electricity.
6. Use the following table to answer the question: Items Cash receipts from farm marketing Receipts of government payments Other income from farm sources Production expenses Value of real estate assets Items Value of non-real estate assets Financial assets Liabilities a. What is the Gross Farm Income? b. What is the Net Farm Income? Dollar $750,000 $150,000 $100,000 $400,000 $10 million Dollar $2 million $4 million $9 million
стор 0 The goverment report that (GDP) Increased by 1.6 6 1.6 percent in the last quater. This statement means that GOP Increased @by 6.4 percent for the year (6) rate of 6.4 percent 1 at an annual rate of 6.4 during last quater Ⓒ) at an annual rate of 1.6 during the las quater d at an annual rate of 4 4 percent during the last quater.
(4. From 2009 to 2014, Eastlandia experienced large fluc- tuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future disposable income did not change. The accompanying table shows the level of aggregate con- sumer spending and disposable income in millions of dollars for each of these years. Use this information to answer the following questions. Disposable income (millions of dollars) Consumer spending (millions of dollars) Year 2009 $100 $180 2010 350 380 2011 300 340 2012 400 420 2013 375 400 2014 500 500 a. Plot the aggregate consumption function for Eastlandia. b. What is the marginal propensity to consume? What is the marginal propensity to save? c. What is the aggregate consumption function?
16- Which one of these will be deducted from gross output to determine the net output? a. Intermediate consumption b. Private income c. Factor income from abroad d. Total government spending
1. Complete the accompanying table with disposable income (DI) and consumption (C) schedules for a private, closed economy. All figures are in billions of dollars. DI Consumption Saving АРС APS MPC MPS 8. 40 40 80 72 120 104 160 136 200 168 240 200 (a) Refer to the above data. If plotted on a graph, the slope of the consumption schedule would be: (b) The break-even level of income is ($ ) where saving equals ( $ :). Households dissave ( $ ). Dissaving occurs at the lowest levels of income as households spend ( more, less ) than they receive in disposable income. This dissaving could occur with households liquidating (selling for cash) their assets or borrowing money. As income rises we see that savings ( increases, decreases ) by a greater and greater amount. (c) If consumption increases by $10 billion at each level of disposable income, the average propensity to consume (APC) will ( change, unchange) and/but the marginal propensity to consume (MPC)will ( change, not change). (d) (APC,…