Rewrite the National Income model from the following equations and find the coefficient matrix if the variables are arranged as Y and C. What will be the constant matrix? Y = C + I, + Go C = 25 + 6Y1/2
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- 1. What relationship does the income expenditure model represent? Why is it used?Given the following income data, please answer the questions below: Real GDPConsumption IgGovernmentExportsImports$ 80000$120000$7000 $18000$6000$11000$160000$180000$7000 $18000$6000$ 11000$240000$240000$7000 $18000$6000$11000$320000$300000$7000 $18000$6000$11000$400000$360000$ 7000 $18000$6000$11000 a. Solve for net exports in each row.b. Solve for aggregate expenditures (AE) in each row.c . State the value for the equilibrium GDP. d. If imports were to increase by $40000 so they are now equal to $51000. solve for net exports again.e. With this new export value, solve for aggregate expenditures in each row.f. State the value for the new equilibrium GDP.g. Solve for the multiplier (you can solve for either the actual or simple multiplier).2. Consider the following two tables with output derived from data of a single country. Table 1 sets out expenditure shares for households at various points on the income distri- bution. 1 Table 1: Expenditure shares for households Expenditure shares (percentage) at: Expenditure category median of income bottom 10% of top 10% of distribution income income distribution distribution Food 46.3 50.2 18.3 Rent 19.1 25.8 27.7 Transport 5.8 5.5 9.8 Household Items 1.9 0.1 10.4 Healthcare 1.1 0.5 13.6 Education 12.0 2.4 15 Personal items 5.3 5.1 2.3 Energy 3.1 2.3 0.8 Clothing 2.2 1.2 1.9 Miscellaneous 3.2 2.6 4.2 Total 100 100 100 Table 2 sets out the regression output from an OLS regression estimating the share of household budget devoted to mealie meal and meat using the Working-Leser Engel curve specification: K-1 wi = ai + Biln (2) + niln(n)+ Yik- n + T;Z + ui k=1 where w; is the share of total household expenditure on food item i (mealie meal or meat) measured as a proportion between 0…
- 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)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. ?? ANational 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 Income
- III. In a particular very small region, the consumer price index, C, depends on the current valuc of gross regional domcstic expenditure E, number of people living in poverty P, and the average number of household members in a family F, by the following formula: 3 e-Ep C = 100 + F If it is known that the gross regional domestic expenditure is decreasing at a rate of PHP 50 per year, and the number of people living in poverty and the average number of household members in a family are increasing at 3 and 1 per year, resp., how fast does the consumer price index change per year at the moment when E = 1,000, P = 200, and F = 5?Government purchases of goods and services $150 Government borrowing $60 Government Taxes = $100 Government transfers = $10 %3D Private savings = $200 %3D Consumer Wages, profit, interest, rent = $800 Households spending = $510 Markets for goods and services Factor Financial markets markets Gross Wages, profit, interest, rent = $800 domestic Borrowing and stock issues by firms = $110 product %3D %3D Firms Investment spending = $110 %3D Foreign borrowing and sales of stock = $130 Exports = $50 %3D Rest of world Foreign lending and purchases of stock = $100 Imports = $20 %3D13 Which national income estimation method needs information such as indirect taxes, depreciation and intermediate consumption? a. Net output b. Income c. Expenditure d. Factor
- Activity 2: Taxes and Salary are related to one another when it come to purchasing power which affect entrpreneurs, diagram presented this relationship, explain briefly. SALARY TAXESIf we want to calculate total spending in the economy, then we will include all of the following except: O spending by firms on new capital equipment spending by households on newly built houses government spending on new goods and services tax revenue collected by the government1- Answer the following questions, According to given data about Country X, Corporation Tax Insurance Payment Student Grant Payments Export Import Retained Earnings Government Expenditures Depreciations Consumption Payments Personel Taxes A. What is the value of Gross Domestic Product for country X? B. What is the value of Gross National Product for country X? C. What is the value of Net National Product for country X? D.What is the value of National Income for country X? E. What is the value of Personel Income for country X? F. What is the value of Disposable Personel Income for country 25 15 15 25 15 40 X? 400 30 950 60 Indirect Taxes 70 Other Transfer Payments 20 Gross Investments 250 Net Foreign Factor Income Interest Earnings 55 15