Aggregate expenditure and Equilibrium output. Assume the following Consumption function (C) = 500 +(0.65) Y Investment (I) = 400 Tax = 1000 Government expenditure (G) = 300 Export (Ex) = 400 Import ( Im) = 0.05 YD Where YDis Disposal Income
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1.2. Graph (with correct labels) equilibrium Y and AE.
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- C = 500 + .75Yd I =300, t = 0.2 G = 600 Consumption out of Disposable income is equal to: a)2,560 b)3,125 c)720 d)2,600Using the data in the table below, calculate Aggregate Expenditure (AE), Savings (S), and increasing inventories Change (UI). Please ensure you show and input the negative sign where necessary for your answers on savings and undesired inventory changes. Aggregate Expenditure (AE) Number Number Number Income (Y) 550 640 730 Consumption (C) 577.5 636 694.5 Investment (1) 135 135 135 Savings (S) Number Number Number Inventory Disequilibrium Number Number NumberA change from E 1 to E 2 is most likely to result from: A decrease in consumer incomes An increase in the wages of chicken workers An increase in the price of beef products Improved technology in the chicken industry
- a) Place the numbers below in the appropriate blanks in the figure above (billions of dollars) Personal Consumption Rents Interest Corporate Profits Gross Investment Government Purchases Wages Imports Exports Savings Depreciation Taxes $2,582 14 287 297 669 815 2,347 178 100 2,082 582 500 (i) Net Exports (ii) Total Leakages (iii) Personal Income (iv) Personal Disposable IncomeRefer to the below figure: the saving function can be given as: Aggregate consumption (C) 270 200 130 60 450 100 S = -60 -0.3Y O S = -60+ 0.3Y O S = 60+ 0.7Y O S = -60 -0.7Y O S = -60 +0.7Y 200 300 Aggregate income (Y)Describe the three steps in a replacement captial budgeting project in great detail
- Which one of the following statements is FALSE?(a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andMultiple‐choice questions: Select one correct answer for each of the following. In your answer booklet, write down only the number of the question and next to it, the letter of the correct answer.spending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.Question Eleven Sharp Inc., a wholly Ghanaian owned company specializes in the production of hand sanitizers branded as Quin. The company has branches in all the regions in Ghana with its head office located at Cape Coast. It employs 1,200 people and pays an average of GH¢ 550.00 as income tax to the govemment of Ghana on a monthly basis. Suppose that seven thousand, eight hundred and twenty (7,820) units of Quin are produced and supplied by Sharp Inc. but the quantity demanded for Quin is eight thousand (8,000) units. Ceteris Paribus, a GH¢ 20.00 change in the price of Quin results in a change in quantity demanded for and supplied of 4 and 5 units, Ay respectively. [Hint: change in X due to change in Y is given as ax ]. Given the above information: a) Determine the equilibrium price and equilibrium quantities of Quin. b) Suppose the Govemment of Ghana in the wake of the COVID-19 pandemic grants a subsidy of GHs 4.50 on each Quin produced. Compute the new equilibrium price and…A firm's production is Q= 60L-0.02L² Where Q denotes output and L denotes the size of the workforce, calculate the value of MPL when (i) L = 10 (ii) L = 100
- In a certain country, the government spends the total yearly budget for infrastructure renovation according to the following principles: projects which received funding the year before get 20% less funding than the previous year; ● an additional € 20 million is assigned to new infrastructure renovation projects. For the year 2023, a total of € 150 million is spent on infrastructure renovation. a) Define an appropriate sequence to describe the total yearly budget for infrastructure renovation. Write down a recursive equation with initial condition for this sequence and find the general term. b) Describe in words the evolution of the yearly budget for infrastructure renovation. c) How much will be spent on infrastructure renovation over the period 2023 to 2032 (including both start and end year)? d) A new government wants spending on infrastructure renovation to evolve towards € 160 million per year. In order to do so gradually, it decides to change the reduction percentage for existing…provide a critical discussion of the adjustments to the 2020/21 operational expenditure, including the major considerations for these adjustmentsCommon Property and Public Goods Problem To water their vine yards, a group of farmers in Cyprus drill identical wells and draw irrigation water from an underground aquifer. This aquifer has a natural maximum recharge rate of 340,000 liters per day (in others words, a maximum of 340,000 liters of water per day filter into this underground reservoir from natural sources). The table below shows the relationship between the daily total water output (total product) and the number of wells operating. Number of Wells Operating Total Water Output (in 1000s of Liters/Day) Total Revenue (TR) Total Cost (TC) Average Revenue (A VR) Profit 0 0 0 0 0 0 10 100 20 200 30 280 40 340 50 380 60 400 70 400 80 380 90 340 (a) The cost of operating a well is €60/day and the value of water to each farmer is €0.1/liter. Using this information and the…