You are given the following information about a closed economy with no government: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the question: Calculate the equilibrium level of income.
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You are given the following information about a closed economy with no government:
Consumption = 115 + 0.6Y
Investment = 550
Use the above information to answer the question:
Calculate the equilibrium level of income.
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- You are given the following information about a closed economy with no government:Consumption = 445 + 0.75Y Investment = 250 Calculate the equilibrium level of income.Silesia You are provided with the following information about an imaginary economy called Silesia. Use the information provided in the table to answer the questions below. Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption 150 Investment Expenditure 300 Full-employment output 2040 Marginal propensity to consume 0.75 Marginal propensity to import 0.15 Source: Bester, N. 2017. Tax rate 0.25 5.1 Derive and calculate the consumption function for the data provided. Show all formulas and calculations used. 5.2 Calculate autonomous spending. Show all formulas and calculations used 5.3 Calculate the multiplier. Show all formulas and calculations used. Round off your final answer to 1 decimal.From the information above, calculate and sketch the diagram showing the equilibrium level of income.
- You are given the following information about a closed economy with no government:Consumption = 115 + 0.6YInvestment = 550Use the above information to answer the questions that follow:Q.4.3 Calculate the equilibrium level of income. (3)From the information above, calculate the level of consumption and saving that occurs at the equilibrium level of income.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?
- Complete the following table. Given Disposable Income and an MPC, calculate the level of consumption and savings.Economics Use the information provided below to answer the following questions: C= 0.8( y – ty) M d = 0.25y - 30r I = 400 -20r M s /p = 350 G = 500 The disposable income (y d ) is equal to : Select one: a. 1,500 b. 1,300 c. 1,400 d. 1,600In an economy of a specific country, the economy's consumption schedule is given in the table below. GDP=DI C 6500 6680 6800 6840 7000 7000 7200 7160 7400 7320 7600 7480 7800 7640 8000 7800 Use the above table information to answer the questions of part 1: Part 1: 1. If disposable income were $7800, how much would be saved? 2. What is the "break-even" level of disposable income? 3. What is this economy's marginal propensity to consume? 4. What is the average propensity to consume when disposable income is $7000? When disposable income is $8000? Part 2: 5. Suppose a $100 increase in desired investment spending ultimately results in a $300 increase in real GDP. What is the size of the multiplier? 6. If the MPS is .4, what is the multiplier? 7. If the MPC is .75, what is the multiplier? 8. Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately change real GDP?
- 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?Draft a graph which shows the law of supply and demand to explain to conditions as below: Surge in household disposable income.Assume that the economy is now governed by a government and begins trading with other economies. The economy is described by the following set of equations. ?=1000+0.5⋅?d ID = 600 G=700 T=400 EX=0.1⋅Y IM=100+0.1⋅Y YD = Y - T Calculate the equilibrium level of output Y* a) 2857 b) 4000 c) 6274 d) 4400 Whats the government expenditure multiplier? Whats the tax multiplier? Whats the ba;anced budget multiplier?
