Determine aggregate expenditures (AE) in this economy when real GDP (Y) is equal to $1,500 billion, $2,000 billion, and $2,500 billion. When Y = $1,500 billion, AE = billion . When Y = $2,000 billion, AE = billion . When Y = $2,500 billion, AE = billion .
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Determine aggregate expenditures (AE) in this economy when real
When Y = $1,500 billion, AE = billion .
When Y = $2,000 billion, AE = billion .
When Y = $2,500 billion, AE = billion .
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- Suppose the interest on the debt was $700 billion. If interest is paid domestically, 90% will be spent domestically (the remainder is spent on foreign goods). If interest is paid to the foreign sector, only 10% is spent here (the remainder is spent in foreign countries). Every dollar collected in axes to pay the interest cause domestic spending to fall 90 cents. The spending multiplier is 2. d) What is the net impact on GDP if all interest is paid domestically?The desired aggregate expenditure function of an economy is illustrated in the graph to the right. The dashed line, Y*, shows the potential level of national income in this economy. The marginal propensity to spend is 0.75. Use the point drawing tool to plot and label the equilibrium level of income. Carefully follow the instructions above, and only draw the required object. Desired Aggregate Expenditure ($ billions) 3,750- 3,000- 2,250- 1,500+ 750 500 0- Aggregate Expenditure Function 0 45 line AE Y = 3,000 4,000 1,000 2,000 3,000 Actual National Income ($ billions)GDP in an economy is $8,000 billion. Consumer expenditures are $4,800 billion, government purchases are $1,600 billion, and gross investment is $1,500 billion. Net exports must be $_____ billion. Your Answer: Answer 4
- Question 45 5 pts Potential GDP equals $500 billion. The economy is currently producing GDP equal to $400 billion. If the MPC is 0.52, then autonomous spending must change by $ billion for the economy to move to potential GDP? Please round to two decimal places where needed. Question 46 5 pts Suppose Ford plans to produce 9.2 million trucks this year. The company expects to sell 7.5 million. Suppose that at the end of the year, Ford has sold 7.3 million trucks. What is the level of planned inventories? Please round to the nearest one-decimal and enter as millions. For example, if your answer was 4,500,000 you would enter the number 4.5. Question 47 5 pts An economy sees consumption increase by $2,792 million when disposable income increases by $4,770. Assuming the marginal propensity to consume remains constant, what is the marginal propensity to save? Please round to the closest two decimal places.Use the figure to calculate the marginal propensity to consume (MPC) between point A and point B. MPC = (Enter your response as a real number rounded to two decimal places.) C Real consumption spending ($ billions) Consumption and National Income $3,750 $2,250 B $3,000 $5,000 Real national income or real GDP ($ billions) CDeriving and exploring the total expenditures curve The following graph shows total production (TP) and the level of Natural Real GDP (NRGDP) for a hypothetical economy. When Real GDP is $350 billion, consumption is $300 billion, government purchases are $25 billion, and investment is $50 billion. When Real GDP is $400 billion, consumption is $325 billion, government purchases are $25 billion, and investment is $50 billion. Use the blue line (circle symbol) to plot the economy's total expenditure function within a simplified Keynesian framework. (?) The economy is in equilibrium when Real GDP is? [$425 billion, $400 billion, $350 billion, or $375 billion] At this point, the economy is also in? [Says Paradox, a recessionary gap, or an inflationary gap] which of the following did Keynes argue would be needed to move the economy to the equilibrium at Natural Real GPD? Check all that apply. - An increase in investment A decrease in government purchases - A decrease in consumption - An…
- Draw expenditure graph with information below C=360+0.6Y I=200million G=150millionSuppose the current GDP is $11.3 trillion. Assuming that consumption is $6.7 trillion, investment is $2.1 trillion, exports are$1.8 trillion, and imports are $1.4 trillion, government purchases are $___ trillion. If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and net exports are -$1,910, then government purchases are:If MPC =.6 and government purchases increases by $5 billion, GDP will increase by $3 billion $30 billion $12.5 billion $1.25 billion
- Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62. a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP. Instructions: Enter your responses rounded to one decimal place. MPC Impact of a one-dollar decrease in taxes 0.75 0.96 0.62 b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes. Instructions: Enter your responses rounded to one decimal place. MPC Impact on GDP 0.75 $ 0.96 $ 0.62 $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Calculate the net cumulative change in the aggregate expenditure if taxes were cut by $200 billion and MPC is estimated to be .75. What if government expenditure was increased by $200 billion?Examine the graph above. Suppose that government increases its spending, shifting the aggregate expenditure line upwards. GDP increases from GDP1 to GDP2, and this amount is $550 billion. If the MPC is 0.8, calculate the difference between the points N and L to find out by how much the government spending changed.