Suppose that Country X's government wants to increase output. If the multiplier equals 2.5 and the government increases spending by 300, how much will output increase by? 750 200 O 50 100
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- Based on the following statistics, how much is consumption? Total spending Investment Government spending Exports Imports O-$0.38 trillion O $5.13 trillion O $6.49 trillion O $11.62 trillion $11.62 trillion $2.56 trillion $2.95 trillion $1.80 trillion $2.18 trillionGDP $0 1 2 Consumption $0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 D 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is: 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investme O $1 trillion. $2 trillion. O $3 trillion. O $4 trillion. $6 trillion. 4 Aggregate Expenditures 6 Unplanned inventoryA Moving to another question will save this response. Question 22 All figures in the table below are in billions. Assume that investment, , is not affected by the income GDP level. GDP Consumption + Exports Imports Investment $ 500 $ 525 $ 15 $ 10 550 560 15 10 600 595 15 10 650 630 15 10 700 665 15 10 750 700 15 10 The multiplier for this private open economy is O A. 2.00. O B. 3.33. O C. 2.50. O D. 1.25. A Moving to another question will save this response.
- Moving to another ques Quèstion 20 All figures in the table below are in billions. Assume that investment, Ia, is not affected by the income GDP level. GDP Consumption + Exports Imports Investment $ 500 $ 525 $ 15 $ 10 550 560 15 10 600 595 15 10 650 630 15 10 700 665 15 10 750 700 15 10 The multiplier for this private open economy is O A. 2.50. O B. 2.00. OC. 1.25. O D. 3.33. hpWhich of the following statements about the income-expenditure must be true? Other things equal; O a. the multiplier for an open economy with a non-negative marginal propensity to import cannot be larger than for a closed economy. O b. the multiplier for a closed economy will be larger, the higher is the marginal tax rate. O c. the balanced budget multiplier is equal to one. O d. an increase in the marginal propensity to save will increase the size of the multiplier. O e. an increase in the marginal tax rate causes the PAE curve to become steeper.Use the following graph for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. Consumption and Investment $500 450 400 350 - 300 - 250 -- 200 150 100 50 O O $50 billion. At the equilibrium level of real GDP, saving will be O $100 billion. 45 O $150 billion. C+Ig $50 100 150 200 250 300 350 400 450 500 550 Real Domestic Output ($B) O undeterminable from the information given. с
- Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | = 800 G = 600 NX = 0 T= 700 Refer to problem 1. Equilibrium Real GDP is O 7200 O 4200 O 1800 O 5500ADVANCED ANALYSIS Assume that the consumption schedule for a private open economy is such that consumption C= 60 + 08Y Assume further that planned investment lo government spending G, and net exports X are independent of the level of real GDP nd constant at lg 40, G= 0, and Xp= 10. Recall also that, in equilibrium, the real output produced () is equal to aggregate expenditures: Y= C+lg+ G+ Xp Instructions: Round your answers to the nearest whole number. a. Calculate the equilibrium level of income or real GDP for this economy S 1050 b. What happens to equilibrium Yif lg changes to 20? 950 What does this outcome reveal about the size of the multiplier? Multiplier=Suppose that Amazon decides to spend $10 million on a new distribution center. If the marginal propensity to consume is .8. then how much will GDP go up by once the multiplier process has played out? O $10 million O $20 million O $40 milion O $50 million
- Which of the following policies will NOT shift the Aggregate Expenditure curve upward? Select one: O a. increasing autonomous taxes O b. decreasing autonomous taxes O c. increasing autonomous transfer payments O d. increasing government expenditures on goods and servicesI: Investment; G: Government spending; EX: Exports; T: Taxes; and IM: Imports. Suppose that I+G+EX equals $25 and the economy is in equilibrium. What is the amount of saving when T = $0 and IM = $15 at the equilibrium level? O so O $10 O $15 O $40 $25China's Economy Just Shrank for the First Time in Decades. It Could Still Eke Out Growth This Year China's real GDP decreased 6.8 percent in the first quarter of 2020. Investment decreased by 16 percent and consumer spending by 12.5 percent. Exports decreased 13 percent. Explain how gavemment expenditure minus imports changed in the first quarter of 2020. Government expenditure minus imports O A. decreased by more than 6.8 percent O B. must have increased OC. must have remained constant O D. decreased by less than 6.8 percent or increased