For each of the following shocks, identify what
component(s) of U.S. planned aggregate expenditure are directly...
For each of the following shocks, identify what
component(s) of U.S. planned aggregate expenditure are directly
affected and in which direction.
a. Income tax rates increase:
Which component of planned aggregate expenditure is
affected?
Consumption
Investment
Government spending
Net exports
None of these are affected
What happens to planned aggregate expenditure?
Increases
Decreases
Unaffected
b. China experiences an economic boom:
Which component of planned aggregate expenditure is
affected?
Consumption
Investment
Government spending
Net exports
None of these are affected
What...
Personal consumption expenditure 200, Personal Taxes 50, Exports
30, Depreciation 10, Government Purchases 50, Gross private...
Personal consumption expenditure 200, Personal Taxes 50, Exports
30, Depreciation 10, Government Purchases 50, Gross private
domestic Investment 40, Imports 40, Government transfer payments
20:
Please show and give an explanation to your answers
provided
a. What is the value of GDP?
b. What is the value of net domestic product?
c. What is the value of net investment
d. What is the value of net exports?
e. What is the value of disposable income?
Consider the data presented in the table:
Actual
aggregate expenditure or output (Y) (billions of $)...
Consider the data presented in the table:
Actual
aggregate expenditure or output (Y) (billions of $)
Consumption (C) (billions of $)
Planned investment (billions of $)
Government spending (G) (billions of $)
Net
exports (NX) (billions of $)
Unplanned investment (inventory change) (billions of
$)
470
270
130
80
30
570
350
670
430
770
510
870
590
Based on the assumptions of the aggregate expenditure model,
fill in the columns for planned investment, government spending,
and net exports.
Instructions:...
In a closed economy, without the government, the consumption
expenditure equals $5,000 and the investment expenditure...
In a closed economy, without the government, the consumption
expenditure equals $5,000 and the investment expenditure equals
$2,000. If the population of the economy is 200, the per capita
national income is:
A. $10.
B. $17.
C. $35.
D. $50.
In a closed economy without the government, income equals:
A. aggregate consumption.
B. aggregate savings.
C. aggregate savings plus aggregate investment.
D. aggregate savings plus aggregate consumption.
The savings rate designates:
A. the fraction of income that households save.
B....
10. China’s economy has seen dramatic increases in investment,
consumer spending, government expenditure on infrastructure, and...
10. China’s economy has seen dramatic increases in investment,
consumer spending, government expenditure on infrastructure, and
exports to the United States and to Europe. Inflation in China,
however, has remained fairly moderate. Explain why this may be the
case using the aggregate demand curve and the inflation adjustment
line.
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
1.Calculate savings, autonomous consumption, MPC, MPS, break
even income, and the equilibrium level of income (Y = AE = C + I +
G + NX) in the above given information.
2. Draw a graph...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000...
Income
(Yd)
Consumption
Expenditure
Saving
Investment
Expenditure
Government
Expenditure
Net Export
Expenditure
Aggregate
Expenditure
$8000
$11,000
$2,500
$5,000
$12,500
12,000
14,000
2,500
5,000
12,500
20,000
20,000
2,500
5,000
12,500
30,000
27,500
2,500
5,000
12,500
50,000
42,500
2,500
5,000
12,500
100,000
80,000
2,500
5,000
12,500
Calculate savings, MPC, MPS, break even income, and the
equilibrium level of income (Y = AE = C + I + G +NX) in the above
given information.
Draw a graph showing disposable income (Yd)...
Aggregate Output/Income
Net Taxes
Planned Investment
Aggregate Consumption
Government Spending
1,000
200
200
680
200
1,100...
Aggregate Output/Income
Net Taxes
Planned Investment
Aggregate Consumption
Government Spending
1,000
200
200
680
200
1,100
200
200
760
200
1,200
200
200
840
200
1,300
200
200
920
200
1,400
200
200
1,000
200
1,500
200
200
1080
200
1,600
200
200
1,160
200
Please show calculation
a. Complete the table by
determining the aggregate expenditure, the unplanned inventory
change, savings and disposable income at all income
levels
b. Determine
the marginal propensity to consume (MPC) and marginal...