Use the information below to calculate the equilibrium level of GDP. C=500+0.5Yd, I=300, G=2000, T=600. b. What happens to the equilibrium level of GDP if consumption decreases to 400?
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Use the information below to calculate the equilibrium level of
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- Potential GDP| ' 45° C+1+(X-IM) 4,800 B 3,200 3,000 4,000 5,000 2. Use the graph above to answer the following questions: a. Calculate the MPC: b. What is the equilibrium value of GDP?_ Real Expenditure (billions of dollars per year)Evaluate the following statement: Even if the prices of a large number of goods and services in the economy increase dramatically, the real GDP for the economy can still fall.determine the equilibrium level of real GDP and the MPC.
- From the following data, determine the equilibrium level of real GDP.The equilibrium level of real GDP is ______________.You are given the following information about an economy. C=20+0.8(Y-T) I= 100 G=520 T= 0.25Y Find equilibrium GDP a“If taxes and government spending are increased by the same amount, there will be no effect on equilibrium GDP.” True or false? Explain and support your answer using a specific hypothetical example.
- Calculate the equilibrium level of output (income) for the following economy: Consumption C = 1500+0.75Y Investment I = 500Use the following information to complete the calculations. C = 15235 + 0.67Y I = 8777 G = 3425 NX = -551 What is the value of autonomous expenditure (AE)? Round your answer to the nearest dollar. AE: $ Calculate the equilibrium level of GDP. Round your answer to the nearest dollar. GDP: $What is the difference between aggregate expenditure and aggregate demand? Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?
- 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.Q1:You are given the following income-expenditures model for an economy : Consumption C = 300 + .64Yd Tax (T) = $60 Government expenditure G = $100 Investment (I) = $120 From above data calculate the follows: 1. Equilibrium level of income 2. At the equilibrium level of income, what is the amount of consumption?Calculate the equilibrium level of income in the economy, if C = 500+ 0.9Y. and investment expenditure is 3000.
