6. Let the AE function be given by AE0 = 100$, mpe = 0.5, and
the...
6. Let the AE function be given by AE0 = 100$, mpe = 0.5, and
the change in AE = +50$. Fill in the following table:
Employment
Real Income Y=AP
Original Aggregate Expenditure
Subsequent Aggregate Expenditure
1
100$
2
200$
3
300$
4
400$
● Draw the economy in a graph.
● What is the multiplier in the economy?
● Let there be a change in AE from Government Expenditures of
$50 in the economy. Arrive at the new Multiplier...
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)...
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:...
3. Consider an economy characterized by the following
equations
AE = 10 + 0.75Y - 0.5P...
3. Consider an economy characterized by the following
equations
AE = 10 + 0.75Y - 0.5P
AS: Y = 10 + P
where Y is national income, AE is desired aggregate expenditure,
P is the price level, AS is the aggregate supply. National income
is in billions of dollars.
a) What is the equation for the aggregate demand (AD)? Solve for
equilibrium P and Y. Illustrate the equilibrium in a diagram with P
on the vertical axis and Y on...
In the table given below Y represents the aggregate expenditure
of the economy on C =...
In the table given below Y represents the aggregate expenditure
of the economy on C = consumption, I = investment, G = government
projects, and X = net exports.
Table 9.3
Aggregate Expenditures
Y
C
I
G
X
$0
$50
$75
$150
$40
$150
$125
$75
$150
$10
$300
$200
$75
$150
-$20
$450
$275
$75
$150
-$50
$600
$350
$75
$150
-$80
Refer to Table 9.3. Calculate the marginal propensity to consume
in the economy.
a.
0.25
b.
0.50...
If autonomous consumption is $1000, the MPC = 0.75, net taxes =
$500, investment spending =...
If autonomous consumption is $1000, the MPC = 0.75, net taxes =
$500, investment spending = $800, and govt purchases = $500, and NX
= $0, what is equilibrium GDP?
Question 1 options:
$1,800
$1,925
$2,566.70
$7,200
$7,700
Question 2 (1 point)
The focus of the short-run macro model is on the role of
Question 2 options:
spending in explaining economic fluctuations
labor in explaining economic fluctuations
financial markets in explaining economic fluctuations
output in explaining economic fluctuations
resources in...