Total planned expenditure (equals income) is 45,000, C- cr= 1000, the marginal propensity to consume is 0.5, government purchases are 6,000, taxes are 5,000 and Net exports is 5,000. planned investment spending is
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- ingr Income (GDP = DI) $480 520 560 600 640 680 720 760 800 Consumption 512 536 560 504 608 632 b. If the MPC is 0.75? 656 680 704 Saving $-32 -16 0 16 32 48 64 80 96 What is the value of the marginal propensity to consume? APC Instructions: Round your answer to the nearest whole number. Change in GDP = billion. 1.067 0.990 0.880 APS -0.067 0.027 a. By how much will GDP change if firms increase their investment by $9 billion and the MPC is 0.9? Instructions: Round your answer to the nearest whole number. Change in GDP- 9 billion. 0.12016. Find consumption expenditure from the following National Income =Rs. 5000 Autonomous Consumption = Rs. 1000 Marginal Propensity to Consume = 0.8 %3Din an imaginary economy, there is no foreign trade and no government activity. APC = MPC = 0.08. In equilibrium, consumption expenditure is Rs,20, 000 Million. (a) What is ihe level of invesiment expenditure? (b) What is the value of the multiplier (c) Suppose investment spending remains unchanged but both APC and MPC fall to 0.06, what is the new equilibrium level of national income?
- The gross domestic product (GDP) of Country A is $2 trillion in year 1. What value of investment will increase its GDP to $4.5trillion in year 2? (present your result in the nearest billion dollars, i.e., no decimal places) Assume that the average disposable income and consumption (in real $) of this country's citizen are provided in the table below. Year Income Consumption 1 60,000 50,000 64,726 51,2591. Complete the accompanying table with disposable income (DI) and consumption (C) schedules for a private, closed economy. All figures are in billions of dollars. DI Consumption Saving АРС APS MPC MPS 8. 40 40 80 72 120 104 160 136 200 168 240 200 (a) Refer to the above data. If plotted on a graph, the slope of the consumption schedule would be: (b) The break-even level of income is ($ ) 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 $10 billion at each level of disposable income, the average propensity to consume (APC) will ( change, unchange) and/but the marginal propensity to consume (MPC)will ( change, not change). (d) (APC,…Assuming there is no government or foreign sector, [1 / 1- MPC] represents a. the consumption function.b. the saving function.c. the multiplier.d. break even income
- u.edu.tr/mod/quiz/attempt.php?attempt=3214468&cmid%3D203021 Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. amadı inden 270 miş 200 işaretle 130 60 450 100 200 300 Aggregate income (Y) Figure 23.3 Refer to Figure 23.3. The equation for the aggregate saving is Lütfen birini secin. O A S= -130 +0,4Y O B. S= 140 +05Y OC S= -80 +0.4Y ODS= -60 +03Y CES 200 +06Y Aggregate consumption (C)1.3 A Country has following data Consumption Function = 90+0.75Y, Investment = 20 Billion Determine: 1. National Income Equilibrium 2. National Consumption and Saving Consumption in Equilibirum 3. Graph it!An economy's consumption function is depicted in the table below. Disposable Income (Y) Planned Investment Consumption (C) ($ billions) ($ billions) ($ billions) 0 50 120 50 240 50 360 50 480 50 600 50 a. When disposable income is equal to $240 billion total expenditures (including investment) equal OA. $342 billion. OB. $50 billion. b. Therefore, in this model when investment is included, when the disposable income is $240 billion, saving must be equal to OB. $-102 billion. O C. -0.22. OA. $-52 billion. 100 196 292 388 484 580 OC. $240 billion. OD. $292 billion. OD. $50 billion.
- Economics a) Discuss the determinants of aggregate consumption and aggregate investment. Base onhistorical Australian data, which tends to fluctuate more – investment or consumption? You must also answer why it does this, Data must be sourced. (500 Word count) b) Suppose bad economic stats led investors to be more negative about futureprospects on earnings on investment projects. With the help of diagrams, review theimpact of this change on aggregate consumption and income. Word limit 600The nation's disposable income increases by 400 billion in as a result consumer spending increases by 220 billion therefore the MPC equals what(o) Calculate MPC, MPS and APC from the following data: Income (Y) Consumption 100 95 110 104