Let AE = C +I +G+NX where AE is the aggregate expenditure, C is
the consumption...
Let AE = C +I +G+NX where AE is the aggregate expenditure, C is
the consumption function, I is investment, G is government
expenditure and NX is the net export.
Given C = 100+0.65Y where Y is the national income and I = 100,
G = 100+0.10Y, NX = 0
(a) Graph the consumption function with Y on the horizontal axis
and C on the vertical axis.
(b) Graph the aggregate expenditure function with Y on the
horizontal axis and...
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)...
This assignment is due by Monday, October 12 by
11:59pm.
Income
(Yd)
Consumption
Expenditure
(C)...
This assignment is due by Monday, October 12 by
11:59pm.
Income
(Yd)
Consumption
Expenditure
(C)
Saving
(S)
Investment
Expenditure
(I)
Government
Expenditure
(G)
Net Export
Expenditure
(NX)
Aggregate
Expenditure
(AE)
$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
From the above given information calculate savings, MPC, MPS,
Multiplier, and the equilibrium level of income (Y = AE...
Consider two goods, x and y. With the quantity of Y on the
vertical axis and...
Consider two goods, x and y. With the quantity of Y on the
vertical axis and the quantity of x on the horizontal axis, a
negatively sloped price- consumption curve implies that
A. x and y are inferior goods
B. x and y are normal goods
c. x and y are substitutes in consumption
d. x and y are complements in consumption
If slope = -2 for a line on a graph with x on the horizontal
axis...
If slope = -2 for a line on a graph with x on the horizontal
axis and y on the vertical axis, then if
y increases by 4, x increases by 8
x increases by 4, y increases by 8
x increases by 4, y decreases by 8
x increases by 4, y increases by 2
x = 4, y = 8
Consider a goods market in the following situation.
(1) Aggregate demand: Z=C+I+G
(2) Aggregate supply: Y=Z...
Consider a goods market in the following situation.
(1) Aggregate demand: Z=C+I+G
(2) Aggregate supply: Y=Z
(3) C(Consumption)=c0+c1(Y-T),
(4) G(government spending)= g0-g1Y, T(government tax revenue)=
t0+t1Y (all the
coefficients are non-negative),
(5) (Exogenously given) I=investment
(a) Give interpretations on the newly introduced functions of
the government spending
and revenue. Do they seem realistic?
(b) Represent
Y∗
as a function of exogenous variables and parameters.
(c) Assess the effects of changes in g1 on
Y∗
.
(d) Assess the effects of...
Consider the following short-run, open economy model of the
economy.
Goods Market
C = 100 +...
Consider the following short-run, open economy model of the
economy.
Goods Market
C = 100 + 0.9(Y − T) I = 50 − 7.5r; NX = −50 G = 200; T =
100
Money Market
M = 4,000 P = 10 L(r, Y) = Y − 350r
a. (4 pts) Derive the IS and LM equations and put them on a
graph with the real interest rate (r) on the vertical axis and real
GDP (Y) on the horizontal axis....
In the Four-Graph macroeconomic long-run model (labor market,
aggregate production function, diagonal line to shift Y,...
In the Four-Graph macroeconomic long-run model (labor market,
aggregate production function, diagonal line to shift Y, and
AD-AS), what does it say about output and employment?