Consider the following national income model : Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y Where Go = 187 a. What is the determinant of the coefficient matrix? b. What is the equilibrium value of Y? c. What is the equilibrium value of C? d. What is the equilibrium value of I?
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Consider the following
Y = C + I + Go
C = 224 + 0.55Y
3.1I = 184 + 0.22Y
Where Go = 187
a. What is the determinant of the coefficient matrix?
b. What is the equilibrium value of Y?
c. What is the equilibrium value of C?
d. What is the equilibrium value of I?
Step by step
Solved in 2 steps
- 15. C = 50 + 0.8Yd G =80 I=70 T=100 Based on the information given above, calculate the national income equilibrium 1600 1000 600 1800National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal IncomeThe table below shows the data for the country of Magnolia. Complete the national income accounting framework by filling in the missing data. Remember to enter a minus (-) sign to indicate negative values. Expenditures Consumption Gross investment Government spending Net exports Gross domestic product at market prices 100 Less depreciation Less indirect taxes (net of subsidies) Net domestic product at basic prices +/- net foreign factor income Net national product at basic prices 320 350 30 260 50 160 70 1100 220 100 -10 780 320 06 160 130
- 1. Suppose you have the following national income model: Y - C = G. -0.45Y+ C = 102 -0.45 T -0.4 Y +T = 179 Where G. = 336 %3D Convert this system of equations in matrix form. (a) What is the determinant of the coefficient matrix? (Give your answer to two decimal places) (Note: you can use either inversion or Cramer's rule to find the values of Y, C and T.) (b) What is the equilibrium value of Y? (Give your answer to two decimal places) (c) What is the equilibrium value of C? (Give your answer to two decimal places) d) What is the equilibrium value of T? (Give your answer to two decimal places)1. What relationship does the income expenditure model represent? Why is it used?_8(a): The National Income Model is given by: a. Y = A + C + G b. C = a(Y-T) (b) Find the equilibrium Level of Income when: A = 10 G = 10 á = 0.7 To = 20 c. T = To + t₁ Y t₁ = 0.4
- 9:11 %00N a 46 l VOLTE عدنان الكثيري قبل ۱5 دقيقة Government spending Social Security contributions Corporate taxes Personal income taxes 50 Profit 28 20 Indirect business taxes 10 Imports Exports Interest 8 Rent 54 Wages Consumption expenditures Gross Private Domestic Investment 231 Depredation Government transfer payments 10 250 8 40 Using the above table, the Disposable Personal Income (DPI) for the country is Select one: O a. 147. O b. 78. O 220. Od. 293. ?? AWhat type of solutions do you get in Samuelson´s Model of national income when the parameters satisfy αγ= 1?Using this, can you then solve for the, National income Personal income Disposable personal income
- ig Y Calibri Y 11 - Personal Taxes Social Security Contributions Rents BIU A A- Taxes on Production & Imports Corporate Income Taxes Interest Proprietor's Income Transfer Payments Dividends Compensation of Employees Net Exports Undistributed Corporate Profits Government Purchases Net Private Domestic Investment Imports Personal Consumption Expenditures Consumption of Fixed Capital (Depreciation) Net Foreign Factor Income Corporate Profits Statistical Discrepancy C $ Bill. 30 15 14 18 20 24 35 12 15 315 11 21 92 33 15 283 31 22 8 56 -35 With the above data, follow Tables 7.3, 7.4, and 7.5 in the textbook for guidelines and acceptable steps to calculate: (a) Gross Domestic Product (GDP) by both the expenditures and the income approaches. (b) National Income (NI) by making the required adjustments to Net Domestic Product (NDP). (c) Personal Income (PI) and Disposable Personal Income (DPI). M B EE ChpQuestion One a) The inverse demand and supply functions for a commodity are Pa = 400 – 0.3Q P, = 40 + 0.3Q Where P shows the market price and Q shows the quantity. Subscript d represents demand and subscript s represents the supply. Calculate the equilibrium price and quantity, P* and Q*. b) Given the following national income model Y = C +1+ G C = co + c,Ya Ya = Y – T T = to + t,Y 1 = l, G = Go Co = 100; I, = 80; c, = 0.8; Go = 300; t, = 250; t = 0.2 i) Name the endogenous and exogenous variables in the model ii)Find the equilibrium income, ỸA three-sector economy has following input-output coefficient matrix and final demand vector: 0.5 [1000 A = 0.2 0.5 D = 5000 0.4 4000 Find the gross output of each sector.