Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
7th Edition
ISBN: 9780134472669
Author: Blanchard
Publisher: PEARSON
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Question
Chapter 3, Problem 2QAP
a.
To determine
To calculate: Equilibrium
b.
To determine
To calculate: Disposable Income (YD.)
c.
To determine
To calculate: Consumption spending (C).
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Students have asked these similar questions
Suppose that the economy is characterized by the following behavioral equations:
C = 180 + 0.7OY,
| = 150
G = 190
%3D
T= 120
a.) Equilibrium GDP (Y) =
b.) What is the level of disposable income (YD)? (Round your response to two decimal
(Round your response to two decimal places)
places)
c.) What is the level of consumption spending? (Round your response to two decimal
places)
Q4. Suppose that the economy is characterized by
the following behavioral equations:
C = 160+ 0.6YD
YD= Y-T
I= 150
G= 150
T= 100
(1) Please solve for equilibrium GDP, Y
(2) Please solve for disposable income YD
Suppose that the economy is characterized by the following behavioral equations:
C = 120 + 0.90 YD
|= 160
G = 170
T= 100
Equilibrium GDP (Y) =
(Round your response to two decimal places.)
Disposable income (Yp) =
(Round your response to two decimal places.)
Consumption spending (C) =
(Round your response to two decimal places.)
Enter your answer in each of the answer boxes.
Chapter 3 Solutions
Macroeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (7th Edition)
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Similar questions
- Suppose that the economy is characterized by the following behavioral equations: C = 150 + 0.90YD 1= 130 G = 150 T= 90 Equilibrium GDP (Y) = (Round your response to two decimal places.) Disposable income (Yp) = (Round your response to two decimal places.) %3D Consumption spending (C) = (Round your response to two decimal places.) %3Darrow_forwardMake a graph based off the following: Construct a consumption function from the data given here and determine the MPC.arrow_forwardSuppose that the economy is characterized by the following behavioral equations: C= 120 + 0.90 Y, |= 160 G = 170 T= 80 Equilibrium GDP (Y) = (Round your response to two decimal places.)arrow_forward
- In macroeconomics, the marginal propensity to consume (MPC) is the proportion of extra income that is spent on consumption, and it is important for determining the effects of monetary and fiscal policy. In this exercise, you will estimate the MPC with the slope from regression analysis. 1. Your two variables are consumption and income. Which is the dependent variable and which is the independent variable? 2. You have the following data on consumption and income (in $10,000s). Income Consumption 7 9 11 5 8 2 9 12 7 2 7 2 8 9 Make a scatterplot and draw the line of best fit.arrow_forwardIn the budget presented by the government, far reaching tax rebates are provided to all classes of tax payers. A researcher therefore conducts a survey to examine whether these tax reductions have led to a change in the consumption patterns of various social classes in the country. What kind of study would this fall under? Explain your answer.arrow_forwardConsider the following demand components: Consumption described as a following: 100 million USD as an autonomous level of consumption plus 95% of disposable income spends on consumption. I = 30 G=15 T= 20 (a)Assuming goods market equilibrium, show equilibrium level of output in this economy. (b)How much output increase, if G increase from 15 to 20, show your calculations.arrow_forward
- The consumption demand function merely states that as income goes up, households consume all their increased incomearrow_forwardConsider an economy that is characterized by the following equations: C= 400 + 0.5 Yd I = 700 - 4000i + 0.1y G= 200 T= 200 (M/P)d - = 0.75Y - 7500€ (MP)== 600 What is the equilibrium consumption (C)?arrow_forwardConstruct a consumption function from the data given here and determine the MPC.arrow_forward
- Construct a consumption function from the data given here and determine the MPC. Given the consumption function in the above question, what is the relationship between disposable income and consumption?arrow_forwardConstruct a consumption function from the data given here and determine the MPC. Given the consumption function in the above question, what is the relationship between disposable income and consumption? Is it direct or indirect and then explain what it means.arrow_forwardSuppose that the economy is characterized by the following behavioral equations: C = 180 + 0.80YD /= 140 G = 160 T= 110 Equilibrium GDP (Y) = 1960. (Round your response to two decimal places.) Disposable income (Y,) = 1850. (Round your response to two decimal places.) %3D Consumption spending (C) = | (Round your response to two decimal places.)arrow_forward
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