The table below provides information for the economy of Zawi. C = 80 + 0.8YXN = 28 − 0.3YI = 155G = 250 a. The value of equilibrium income is $ b. Set up a balancing row to verify your calculations (the tax equation is T = 80 + 0.3Y and X = 190). Enter your responses as whole numbers. YTYDCSIGXIMXNAE c. If exports decrease by 68, the new equilibrium income is $
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The table below provides information for the economy of Zawi.
C = 80 + 0.8YXN = 28 − 0.3YI = 155G = 250
a. The value of equilibrium income is $
b. Set up a balancing row to verify your calculations (the tax equation is T = 80 + 0.3Y and X = 190). Enter your responses as whole numbers.
YTYDCSIGXIMXNAE
c. If exports decrease by 68, the new equilibrium income is $
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- The table below provides information for the economy of Zawi. C = 40 + 0.62Y Хм 16 - 0.12Y I = 100 G = 220 a. The value of equilibrium income is $ b. Set up a balancing row to verify your calculations (the tax equation is T = 60 + 0.3Y and X = 205). Enter your responses as whole numbers. Yp G IM XN AE c. If exports decrease by 40, the new equilibrium income is $The table below provides information for the economy of Zawi. C = 50+ 0.65Y I = 135 Y 22 0.15Y a. The value of equilibrium income is $ b. Set up a balancing row to verify your calculations (the tax equation is T = 70+ 0.2Y and X = 215). Enter your responses as whole numbers. T XN G = 240 YD C S c. If exports decrease by 30, the new equilibrium income is $ I G X IM XN AEUsing the ZZ/Y and NX graphs, illustrate graphically and explain what effect an increase in taxes will have on output, exports, imports, and net exports. Clearly label all curves as well as the initial and final equilibria. (100 words max)
- An economy is described by the following equations: C = 500 + 0.85(Y – T), Cis consumption, Y is income and T is taxation M=0.05(1-t)Y imports IP = 1500, planned investment G = 400, government spending T = tY, t = 0.2 is the marginal tax rate X = 1200, X is exports I. The equilibrium level of output for the above economy is 22500 Do NOT include any letters, spaces or symbols (e.g. "$" or ",") in your answer. II. The multiplier for this economy is equal to 6.67 (Round to 2 decimal places) III. Suppose that, in this economy, there is an exogenous decrease in spending of 180. This economy will now be experiencing expansionary gap. Possible answers (write ONE of the following only): "a contractionary" OR "an expansionary". IV. If the potential output of the economy is 10,000, the size of the output gap arising from part III will be Do NOT include any letters, spaces or symbols (e.g. "$" or ",") in your answer. V. If the Okun's Law beta parameter is 2, the cyclical unemployment rate…C = 450 + 0.4Y I = 350G = 150X = 70Z = 35 + 0.1Y T = 0.15YYf = 1550Calculate the tax revenue to the government of this country when the economy (2) remains in equilibrium.Calculate what the new equilibrium income should be if the government of this (6) country decides to cancel all taxes, implying the tax rate would now be 0%.Before the government decreased the tax rate, how much of government spending was required to bring the economy to full employment?20 Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $24.19 billion. The country collected $22.9 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance? Enter your answer to two decimal places. budget balance: $ In the last fiscal year, Lilliput was running a budget surplus a budget deficit a balanced budget billion
- The table below shows the parameters for the economy of Hutu. Give your answers to one decimal point. XN = 160 0.15Y G = 220 C = 40 + 0.65Y I = 150 a. The value of equilibrium income is $ b. If exports were to increase by 40, the new value of equilibrium income would be $ c. Given your answer in part (b), the new value for XN is $ d. Given the equilibrium income in part (a), if full employment income is $800, what change in government spending is necessary to move the economy to this level? Government spending needs to decrease by $. AWhat is the equilibrium level of income for this economy if Y = C + I + G + X - M ? a. 581.82 b. 581.76 c. 483.71 d. 483.53 What the size of the import multiplier for this economy? a. 3.03 b. 3.05 c. 3.07 d. 3.09The President of Westeros hires you as an economic consultant. He is concerned that theoutput level in Westeros is too high and that this will cause prices to rise. He feels that it isnecessary to reduce output by $10 billion. He tells you that the MPC in Westeros is 0.6.Which of the following would be the best advice to give to the Westeros president?A) reduce government purchases by $4 billionB) increase taxes by $10 billionC) reduce government purchases by $10 billionD) increase taxes by $2.5 billion
- How can a reduction in Corporation Tax lead to supply side improvements in an economy?What is a surplus unit? What is a deficit unit?The following table shows the approximate value of exports and imports for the United States from 2006 through 2010. Complete the table by calculating the surplus or deficit both in absolute (dollar) terms and as a percentage of GDP. If necessary, round your answers to the nearest hundredth. Year GDP Exports Imports Exports – Imports Exports – Imports (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of dollars) (Billions of Dollars) (Percentage of GDP) 2006 13,399.00 1,471.00 2,240.30 -769.30 -5.74 2007 14,062.00 1,661.70 2,375.70 -714.00 -5.08 2008 14,369.00 1,843.40 2,553.80 -710.40 -4.94 2009 14,119.00 1,578.40 1,964.70 -386.30 -2.74 2010 14,660.00 1,837.50 2,353.90 -516.40 -3.52 Step 3 In 2006, Net Exports = $1471.0 - $2240.30 = -$769.30. Net Exports as percentage of GDP = -769.30 / 13399 * 100 = - 5.74% Similarly has been calculated for other years Between 2007 and 2008, the _____________ in dollar terms and…