In a closed economy, consumers spend $100 regardless of the level of income, and the marginal propensity to consume (MPC) is Investment is equal to $250. The government spends $500 and collects $50 in taxes.
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- In a closed economy, consumers spend $300 regardless of the level of income, and the marginal propensity to consume (MPC) is 0.75. Investment is equal to $200. The government spends $400 and collects $50 in taxes. The equilibrium level of GDP in this economy is $In the future report of U.S. Gross Domestic Product (GDP) for Quarter 1 of 2023, which of the following would not be an example of an expenditure that would contribute to an increase in the level of GDP in Q1 of 2023? [note: focus on the direct impact of each of the choices below] Group of answer choices U.S. household spending on home appliances increases by 0.5% in 2023:Q1 Business investment spending on industrial equipment rises by 2% in 2023:Q1 U.S. Federal government interest payments rise by $120 billion in 2023:Q4 U.S. consumer spending on domestic air travel increases by 8% in 2023:Q1. None of the choices listed because all would contribute to an increase in real GDP in 2023:Q1.Indicate whether each of the following affect consumption spending (C), investment spending (I), government spending (G), net export spending (NX), or none of the above (N). Enter only the letter given in parenthesis. Carmax sells a three year old car to John The government sends a social security payment to your grandfather John spends his social security check on a new computer Publix buys 4 new computers You pay your tuition to UCF
- The following table shows data on personal consumption expenditures, gross private domestic investment, exports, imports, and government consumption expenditures and gross investment for the United States in 2007, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the missing cells in the following table to calculate GDP. Components Personal Consumption Expenditures (CC) $9,734.2 Gross Private Domestic Investment (II) $2,125.4 Exports (XX) $1,643 Imports (MM) $2,351 Net exports of goods and services (X−MX−M) Government Consumption Expenditures and Gross Investment (GG) $2,689.8 Gross domestic product (GDP) This method of calculating GDP, which involves summing the , is called the approach.The FICA (Federal Insurance Contribution Act) income cap is the point at which one’s income is no longer subject to the 6.2% social security tax that persons pay on their earnings. Under the current law, only the first $142,800 of earnings is taxed. After that, high earners no longer pay Social Security tax for the entire year. Presently the Nation's total personal income approaches $14 trillion. The Congressional Budget Office reports that 80% of all income earned in the Nation is earned above $142,800. 8A. What is meant by the term “Scrap the Cap.” 8B. If the Cap was “scrapped” and if 12.4 % of the income earned over $142,800 was taxed to fund Social Security, how much additional revenue would be generated annually for social security? 8C. Is Social Security really going bankrupt? Please do fast ASAP... fastThe magazine Women of China reported that Chinese women in big cities spent 63% of their income on consumer goods last year, up from a meagre 26% in 2007. Clothing accounted for the biggest chunk of that spending, at nearly 30%, followed by digital products such as cellphones and cameras (11%) and travel (10%). Chinese consumption as a whole grew faster than the overall economy in the first half of the year and is expected to reach 42% of GDP by 2020, up from the current 36%. Source: The Wall Street Journal, August 27, 2010 If the economy had been operating at a full employment equilibrium, (a) Describe the macroeconomic equilibrium after the rise in consumer spending. (b) Explain and draw a graph to illustrate how the economy can adjust in the long run to restore a full-employment equilibrium.
- The Government of Bangladesh plans to administer 280 million doses of COVID-19 vaccine in the coming two years. Most of these vaccines will be imported from India, and other countries. Suppose, the cost of importing each dose of this vaccine is taka 10. What do you think the effect of this massive vaccine procurement have on Bangladesh's GDP? GDP will increase by taka 2,800 million (2.8 billion) GDP will increase by more than taka 2,800 million GDP will not change, or change minimally GDP will fall by taka 2,800 million O OWhen Net Exports are negative: imports are lower than exports and foreign savings flowing into the country are higher than domestic savings flowing out. imports are lower than exports and foreign savings flowing into the country are higher than domestic savings flowing out. imports are higher than exports and foreign savings flowing into the country are lower than domestic savings flowing out. imports are higher than exports and foreign savings flowing into the country are higher than domestic savings flowing out.In an economy where people spend 80% of their incomes, the government lowers taxes by $5000. Calculate the change in real GDP that results. (Be extra careful to follow numeric instructions; round intermediate steps to four decimal places and your final answer to two. Use a positive number to denote an increase and a negative number (with negative sign) to denote a decrease.)
- Assume an economy has a consumption function of C = 0.87 (Yd) + $270.18. Additionally, this economy has investment spending = $878.78, government purchases $299.38, taxes = $111.59, exports = $209.28, and imports $289.40. What is the equilibrium level of GDP based on this information? Round your answer to two digits after the decimal. =Use the expenditure details of a small economy to answer the questions. All the autonomous expenditures are given in $ million. Consumption expenditure ( C ) = $100 + 0.9 ( Y - T ) Investment(l) = $20 Government expenditure(G) =$80, Tax(T) =0.05Y Export(X) = $40 Import(M) =0.1 Y a. Determine the aggregate expenditure(AE) equation. Provide the working to your answer. b. Determine the equilibrium level of income? Provide the working to your answer. c. Explain the government's budget and trade balance and determine the size of the government's budget and trade balance. d. Suppose the government increase its expenditure by $ 10 million. Determine the new equilibrium income? Provide the working to your answer. e. How much the government must increase its spending to achieve an equilibrium income of $1,000 million? Provide the working to your answer. f. Suppose the full-employment income is $1,200 million. Describe the current economics situation based on the result in part(b). What does the…C= 1000+ 0.8(Y-T), 1 = 500, G=800, T = 500. Suppose that government spending FALLS by 200. What is the change in equilibrium GDP? (Round your answer to the nearest whole number, and do not use commas in your answer.)