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able 27-1
|
Y = |
C + I + G |
|
C = |
500 + 0.8(Y − T) |
|
I = |
300 |
|
G = |
700 |
|
T = |
0.25Y |
|
Y = |
C + I + G |
|
C = |
500 + 0.8(Y−T) |
|
I = |
300 |
|
G = |
700 |
|
T = |
0.25Y |
Refer to Table 27-1. What is the level of consumption in this model?
| a. |
2,550
|
|
| b. |
2,950
|
|
| c. |
2,350
|
|
| d. |
2,750
|
|
| e. |
2,150
|
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- Consumption expenditures in the U.S. usually account for approximately 40 O 50 O 60 O 70 80 percent of GDP.3:35 PM O ll al a 59 % f H.W2.pdf Sx. The mantaly conumpthie Values for rice are Use below:- July Sept. Oct. Nov. June Aug. 28.65 7.85 13.45 21.60 24.30 14.70 Cm Cm Cm Cm Cm Determin the seasonal The consumptive use, The average montaly Consumptive use and average dzily comsumptive use, the beak monthly consumptive use.Table 27-1 Y= C+I+G C= 500 + 0.8(Y – T) I = 300 G = 700 T= 0.25Y Table 27-1 Y= C+I+G C= 500 + 0.8(Y-T) I = 300 G = 700 T= 0.25Y Refer to Table 27-1. What is the level of consumption in this model? О а. 2,150 O b. 2,750 c. 2,350 O d. 2,950 O e. 2,550
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- You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)1) In the IS equation why wasnt G in the calculations. 2)Suppose that with all exogenous variables, including T and M at their original values, households become less confident about the future and reduce their autonomous level of consumption from 200 to 150. Solve for the new values of e, Y and NX. With the help of graphs, explain very carefully the mechanisms by which a new equilibrium is reached. 3)Suppose that with all exogenous variables at their original values, the autonomous part of money demand increases to 70. Solve for the new values of e, Y and NX. With the help of graphs, explain very carefully the mechanisms by which a new equilibrium is reached.(1)The following macroeconomic model describes the economy of Sunderland. 1. Y= C +I + G + NX 2. C = 220 + 0.63 Y 3. 1 = 1000- 2000R 4. G = Go 5. NX = 525-0.10Y-50OR 6. M (0.1583Y-1000R)P (a)ls it a fair characterization to refer to equation #2 as a "simple" consumption function? Explain. (b)Derive the expression for equilibrium real output, Y, for this economy. Note: In your final expression for Y, restrict coefficient values to three decimal points. (c) Suppose government spending is 1200 , money supply by the Central Bank is 900 and the price level is 1, find the value of GDP (Y) and equilibrium interest rate (R) for Sunderland. Income Identity Consumption function Investment function Government Expenditure Net export function Money market equilibrium (2)The questions in this section are related to the macroeconomic model of Sunderland. (a)The expression you are asked to derive in question #1b can be considered an aggregate demand curve. Do you agree? Explain your answer. (b)Sketch…
- n an effort to make sales projections, M/s K, B and A, the three B-school executives of Vengaboys Inc., were discussing about the national income and its growth in Ibiza. K had estimated a linear consumption function for Ibiza to be C = 100 + 0.6 Y, and investment to be I = 100 per ear. In Ibiza, there was no income tax and government spending was minimal (assume 0). Ibiza was a closed economy, and hence no exports and imports. (i)K immediately knew what the investment Multiplier was. Can you find out? (ii)What is the level of income in Ibiza? (iii)K estimated that with Government spending 100 on a new road to be constructed, the income levels are sure to go up. K quickly calculated the change in income and the new income level to be:1.12 Study the following diagram and answer the question that follows. Expenditures (billions of dollars per year) 3.500 3000 DOO 2500 2000 1500 1000 500 Figure 9.1 45% At an income level of $2,000 billion, a) Consumption equals $1,500 billion. b) Saving equals $0. c) The MPC equals 0.80. d) There is dissaving. o 500 1000 1500 2000 2500 3000 3500 Income (billions of dollars per year) C Ac25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above O
