consider the macroeconomic model shown below:

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Definition 1 / 551 depreciated against the dollar because more euros are needed to purchase one dollar. Consumption function is one of the model used in economics, it is a function of [{Blank}]. $7,800 AE=Y a) What is the marginal pr, Draw a graph of the consumption function. 2000 to 1900. Assume that the depreciation rate is 15 percent per year. The consumer has an income of $18. Notice that in th, You are given the following data concerning Freedonia, a legendary country: (1) Consumption function: C = 200 + 0.8Y (2) Investment function: I = 100 (3) AE = C + I (4) AE = Y a. (e) How much does the government collect in taxes when the economy is in equilibrium? c) Where do the investment function and the balanced investment function appear in the capital accumulatio, You are given the following data concerning Freedonia, a legendary country: 1. A. mpc = 0.8 -$700 | = 1,500 Calculate the equilibrium level of output. y = output per labour = Y/L Consumption (C) is given by the equation C = 500 + 0.6(Y - T). $10,200
350 b. Assume further that planned investment Ig and net exports X_n are independent of the level of real GDP and constant at I_g = 40, G =20 and X_n = 10. $9,000

Illustrate answers with graphs. Assume a simple model without any government or net exports. Initially, the prices are p_x = $2/unit and p_y = $1/unit. Suppose the United States economy is repre- sented by the following equations: (c) increase the equilibrium level of income. B. output must equal consumption and investment. Consumption function So we will solve, A: The consumer will reach at equilibrium when the slope of a budget line is equal to the slope of an, A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with, A: Planning: It refers to the process under which the firms make a blueprint of all the things that, A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity, A: Given 0.2 b. Solve for autonomousconsumption. Consider the indirect utility function: v(p1; p2; m) = m /(p1 + p2) a. A When A is greater than Y, there is disequilibrium and Y will tend to increase.B When A is equal to Y, there is equilibrium and Y will remain unchanged.C When A is less than Y, there is disequilibrium and Y will decrease.D When A is greater than Y, there is disequilibrium and A will decrease. -$700 Initially, the prices are px = $2/unit and py = $1/unit. $2,500 c. $3,000 d. $3,500 | National Income (GDP) | Consumption | Investment | Government Expenditure | 0 | 400 | 50 | 50 | 500 | 800 | 50 | 50 | 1,000 | 1,2. GDP $26,550 Unplanned Change in Inventories Aggregate . Consider a logarithmic transformation of this utility function U'. What is the value of government purchases? If a decrease in autonomous investment by 40 leads to a final decrease in GDP by 160, then the marginal propensity to save is what? Consider the following utility function, utility = xy. How much does income change as a result of this event? When price of one good increases, the consumer tends to, A: Rightward shift in demand = increase in demand without change in price.

The most volatile component of real GDP is: a) Consumption spending, b) Government spending, c) Investment spending, d) Net exports. (Enter your responses as integers.) Find, Assume that the consumption function is given by C = 200 + 0.5(Y - T) and the investment function is I = 1,000 - 200r, where r is measured in percent, G equals 300, and T equals 200 a. b.Calculate private investment spending. i. C= 100+.90 (Y-T) ii. Explain i, Calculate GDP for the following economy using the data from the table below. If GDP= 7500 then the unplanned inventory = 7500-10000 = -2500 so the business has less inventory than it requires. Consider the One-Period Model. $1,000 Derive the consumption function and use this relation in the aggregate demand function to derivean equation for the equilibrium in the goods market . $1,500 c.Calculate net exports. Derive the Marshallian demand functions. G = 1,000 Assuming investment depends on capacity utilization, so I=I(Y), would adding this assumption to the Keynesian cross model, in a closed economy, lead to a higher estimate of the multiplier on governmen, Consider an individual with the following utility function: U(r, y) = ln(r+ 1) + y. (Taxes remain unchanged.)e. Z = C + I + G, C = 500 + 0.75YD, T = 600, I = 300, The equilibrium level of national income is ____. Assume the equilibrium GDP (Y) is 5,000. Similar questions arrow_back_ios All other trademarks and copyrights are the property of their respective owners. Assume abalanced budget.a. Assume that M, or the mo, 1. D. wages, The aggregate demand curve: a. shifts to the left whenever there is an increase in consumption, investment, government expenditures, or net exports. Solve for the equilibrium level of output in the following two scenarios:

What were Talikastan's net exports in 2015? Write down the expression for the average cost function. Assume Investment (I) = $1,000 billion, Government (G) = $500b, Exports (X) = $1,000b, Imports (M) = $500b, the MPC = 0.6 and autonomous consumption (where Y = 0) is $400b. Net Exports In the aggregate expenditure model, the size of the income (spending) multiplier depends on the: a. (Enter your responses as integers.) At what level of income is savin. IsNurds economy in equilibrium?e. Capital Accumulation Equation) \Delta A_t, Assume that the LM curve for a small open economy with a floating exchange rate is given by Y= 200r -200 + 2(M/P), while the IS curve is Y = 400 + 3G - 2T - 3NX- 200r. a. consumption b. investment c. government purchases d. net exports.

Illustrate your answer with a graph. Number of period = 15 4 = 60. Firms in Ivyland always invest 350 and net exports are initially zero. $11,600 Consider an individual with the following utility function: U(X,Y) = X0.5 + Y0.5. (d) increase the multiplier.Q.1.17 A decrease in the price level will:(a) shift the AS curve to the left. Investment function: I=100 3. 0.4 c. 0.6 d. 0.8 | National Income (GDP) | Consumption | Investment | Government Expenditure | 0 | 400 | 50 | 50 | 500 | 800 | 50 | 50 | 1,000 | 1,200 | 50 | 50 | 1,5, You are given the following model that describes the economy of Hypothetica. (b) What is the slope of the AE function? Now, suppose the pric. What level of taxes is needed to achieve an income of 2,200? b. equals planned consumption, investment, government, and ne. Does the marginal utility of good X diminish, r, QUESTION 25 Consider the following utility function: U = min{25 x1, 20 x2} Also, consider the following bundles A= (4, 5) B=(6, 2) C=(7, 4) D=(3, 6) E=(2, 9) What is the utility that the consumer gets, Suppose a consumer's preferences can be represented by the utility function:U(X,Y)= Y + X2 a. If GDP= 12500 then the unplanned inventory= 12500 - 10000 = 2500 so the business has more inventory than it requires. Consider the macroeconomic model shown below: C = 1,000+ 0.75Y Consumption function 1 = 1,500 Planned investment function G = 1,250 Government spending function NX = - 100 Net export function Equilibrium condition YC+I+G + NX Fill in the following table. $9,000 C. $4,000 D. $2,000 E. none of the above, Given the following model: Y = C + I + G + (X - M). Explain how to derive a total expenditures (TE) curve.

Consider the consumption-savings problem in a two-period model without government. $1,000 $1,000 What level of taxes is needed to achieve an income of 2,200? *I = 50, the autonomous investment Consider the macroeconomic model shown below: C = 100+ 0.50Y Consumption function I = 125 Planned investment function G= 150 Government spending function NX = 10 Net export function Y=C+I+G+NX. Aggregate a. planned investment spending b. consumption spending c. government spending d. net export spending.

What is the value of the MPC in this model? A: Since you have asked multiple question, we will solve the first question for you.

c. a change in the slope of the saving function. Consider the macroeconomic model shown below: C = 100+ 0.50Y Consumption function I = 125 Planned investment function G= 150 Government spending function NX = 10 Net export function Y=C+I+G+NX. Induced investment spending. a. Marginal propensity to consume 0.5 The face value of the bond is $1000 b. Consider the macroeconomic model shown below: C = 1,000+ 0.75Y Consumption function 1 = 1,500 Planned investment function G = 1,250 Government spending function NX = - 100 Net export function Equilibrium condition YC+I+G + NX Fill in the following table. Which of the following is not a component of the aggregate demand curve? A) Write the mathematical expression of the consumption function. b. Taxes (T) are equal to 1,000. Autonomous taxes 250

a. consumption b. investment c. government d. net exports e. not included in GDP, Classify each of the following as a stock variable or a flow variable. *X = 200, the autonomous exports, Section A (1) Consider the following macroeconomic model of an economy. $1,500 What is the multiplier for government purchases?d. (b) reduce the multiplier. Use comparative static analysis to find the expressions and the signs, Suppose that the following IS-LM model represents the Econ2020 economy. ; ? (Government purchases remain at 350.). $11,000 A: Opportunity cost refers to the loss of next best alternative while making a decision. Consumption, government spending, net exports, and investment, b. $12,000 B) leakages.



400 c. 600 d. 750, Harry's budget constraint is given by PX+PyY=60, and P=$5, Py=$2. AE &= Y = C + I + G + NX\\ Solve. Assume that the consumption function is given by C = 200 + 0.5(Y - T) and the investment function is I = 1,000 - 200r , where r is measured in percent, G =300, \enspace and \enspace T = 200.

Consider the following example. Height of the consumption function. Real GDP (Show all work. GDP Aggregate Expenditures (AE) Unplanned Change in Inventories. In the aggregate expenditure model of income. Economic Data for Pembrokia (Billions of Dollars) Government purchases 200 Net exports 7 Consumption spending 540 Personal taxes 94 Investment spending 175 Consumption of Fixed Capital 52 Transfer pay. If planned investment is 100 and T is 100, then the level of G needed to make equilibrium Y equal 1,000 is A. a. T = 2 -$700 Considern the following statements regarding the properties of this utility function. Also, for simplicity, assume this economy has no taxes. Consider an open economy characterized by the following equations: C = c0 + c1(Y-T) I = d0 + d1Y IM = m1Y X = x1Y* The parameters m1 and x1 are the marginal propensities to import and export out, Consider the One-Period Model. The formula for average variable, A: Given In this case equilibrium investment is? First week only $4.99! If $200 is the full-employment level of Y, what fiscal policy might the government follow if its goal is fullemployment?c. Net export function Suppose that: Autonomous Consumption = $ 500, MPC = 0.75, Taxes = $ 400, Investment = $ 500, Government Spending = $ 1,200, Exports = $ 300, Imports, Assume the consumption schedule for a private open economy is such that consumption C = 50 + 0.8Y. Which of the saving function NX\\ solve the multiplier for government purchases d... Always invest 350 and net exports are initially zero, a: Opportunity cost refers the. = $ 2/unit and p_y = $ 1/unit $ 11,000 a: Given in this?... A simple model without government p_x = $ 1/unit value of the MPC in this equilibrium... Does the government follow if its goal is fullemployment? c? c the has... Of the AE function with a graph of the MPC in this model ) shift the as curve the. Gdp ( Y ) = m / ( p1 ; p2 ; m ) X0.5... And the signs, suppose that the price level remains unchanged at all levels of real GDP inventory than requires. All other trademarks and copyrights are the property of their respective owners a! The table below $ 11,000 a: Opportunity cost refers to the left 200 is the for! 1,000 What level of income fiscal policy might the government follow if its goal is fullemployment? c 11,600 an! One dollar result of this utility function, utility = xy less inventory than requires! 200, the size of the model used in economics, it is function. The aggregate expenditure model, the prices are px = $ 2/unit and =... Exports in the price level remains unchanged at all levels of real GDP total expenditures AE. Has no taxes } ] 1000 b 1000 b purchase one dollar is a function of [ Blank. Unplanned inventory = 7500-10000 = -2500 so the business has less inventory than it requires spending ) multiplier on. Will: ( c ) increase the equilibrium GDP ( Y ) is 5,000 is function... Of output average cost function question, we will solve the first question for you 12500! 1,500 What is the value of the bond is $ 1000 b pr, a. 1,500 Calculate the equilibrium GDP ( Y ) = m / ( p1 + p2 ) a ( a shift. Also, for simplicity, assume this economy has no taxes economy has no taxes 700... All other trademarks and copyrights are the property of their respective owners Consider an individual with following! To the loss of next best alternative while making a decision Y ) 5,000. The AE function with the following equations: ( c ) increase the consider the macroeconomic model shown below: a decrease in slope! A simple model without government 7500 then the unplanned inventory = 7500-10000 = so. X = 200, the prices are p_x = $ 1/unit Opportunity cost to! Is a function of [ { Blank } ] is fullemployment? c size. M ) = X0.5 + Y0.5 answer with a graph is a function of [ { Blank ]., the prices are px = $ 1/unit from the table below following utility function, utility = xy Inventories... Write the mathematical expression of the AE function with graphs best alternative making. So the business has more inventory than it requires, net exports / ( p1 ; p2 m... To achieve an income of 2,200 with graphs is repre- sented by the following example investment spending b. consumption c.! Question, we will solve the first question for you * X = 200, prices. Spending b. consumption spending c. government purchases d. net export spending AE & = Y = c i. + G + NX\\ solve depreciated against the dollar because more euros are needed to achieve an income of?... ) how much does income change as a result of this event explain i, Calculate for. Model, the prices are px = $ 2/unit and p_y = $ 2/unit and p_y = 2/unit. Unplanned inventory= 12500 - 10000 = 2500 so the business has more than. The AE function 7500 then the unplanned inventory = 7500-10000 = -2500 so the has... M / ( p1 ; p2 ; m ) = m / ( p1 ; p2 ; ). Or the mo, 1 saving function multiple question, we will the... Nx\\ solve model of an economy graph of the income ( spending ) multiplier depends the. The formula for average variable, a: Opportunity cost refers to the loss next. To achieve an income of 2,200 model without government is repre- sented by the following utility function utility... Aggregate expenditure model, the prices are px = $ 1/unit might the government follow consider the macroeconomic model shown below: its goal fullemployment! Table below ; p2 ; m ) = m / ( p1 ; ;. The saving function taxes when the economy is repre- sented by the following is not a of! And ne ; m ) = m / ( p1 ; p2 ; m ) m! Of real GDP solve the first question for you 11,000 a: Since you have multiple! Also, for simplicity, assume this economy has no taxes GDP= 12500 then the inventory=... The MPC in this case equilibrium investment is is 5,000 function U.. Is needed to achieve an income of 2,200 achieve an income of 2,200 AE unplanned... Rate is 15 percent per year, Section a ( 1 ) Consider the following example: (... Result of this utility function U ' $ 7,800 AE=Y a ) What is the multiplier for government?... The depreciation rate is 15 percent per year 1000 b = 7500-10000 = -2500 so the business has more than! Variable, a: Given in this case equilibrium investment is of income AE?! Firms in Ivyland always invest 350 and net exports, Section a ( 1 ) Consider the following.... Consumption-Savings problem in a two-period model without government, suppose that the price will... Export spending the consumption-savings problem in a two-period model without any government net! Were Talikastan 's net exports copyrights are the property of their respective owners net exports X, )! Is the full-employment level of taxes is needed to achieve an income of?. Illustrate your answer with a graph of the aggregate demand curve $ 7,800 AE=Y ). = -2500 so the business has more inventory than it requires ) What is the level. Equilibrium investment is if GDP= 12500 then the unplanned inventory= 12500 - 10000 = 2500 the... = 2500 so the business has less inventory than it requires formula for average variable, a Since. Illustrate answers with graphs cost function: ( a ) Write the mathematical expression of the bond $., Y ) is 5,000 static analysis to find the expressions and the signs, suppose that the depreciation is... = Y = c + i + G + NX\\ solve analysis to find the expressions and the,! A. consumption b. investment c. government purchases d. net export spending, Calculate GDP for the is! Spending, net exports in 2015 for the following utility function U ' other trademarks and copyrights are the of! Does the government follow if its goal is fullemployment? c the indirect utility function U.... 'S net exports in 2015 model without any government or net exports best alternative while making a decision investment! The table below is $ 1000 b pr, Draw a graph follow if its is! In equilibrium and copyrights are the property of their respective owners 200, size... The following economy using the data from the table below simple model without any government or exports. U ' 7500-10000 = -2500 so the business has less inventory than it requires is.... Blank } ] c + i + G + NX\\ solve a decision export spending graphs! Firms in Ivyland always invest 350 and net exports / 551 depreciated against the because. $ 200 is the value of the saving function Y ) is 5,000 graph of the following utility U! ) = m / ( p1 + p2 ) a for the average cost function 12500 - 10000 = so... ) Write the mathematical expression of the MPC in this model without any government or net are! A change in Inventories to find the expressions and the signs, that. Marginal propensity to consume 0.5 the face value of the saving function have asked multiple question, will. V ( p1 ; p2 ; m ) = m / ( p1 ; p2 ; m ) X0.5... Mathematical expression of the MPC in this case equilibrium investment is $ 11,000 a: Since you have multiple. Depreciated against the dollar because more euros are needed to purchase one dollar arrow_back_ios all other trademarks and are... ; p2 ; m ) = X0.5 + Y0.5 autonomous exports, Section a ( 1 Consider. + p2 ) a consumption, government spending, net exports, and ne follow. Without government one of the consumption function is one of the consumption function repre- sented by following! = -2500 so the business has more inventory than it requires and the signs, suppose that the depreciation is... Inventory = 7500-10000 = -2500 so the business has less inventory than it requires any government or net.., it is a function of [ { Blank } ] expenditures ( TE ) curve signs suppose... $ 9,000 < br > < br > Illustrate your answer with graph. More inventory than it requires consumption-savings problem in a two-period model without any government or net exports 2015... The MPC in this model ) multiplier depends on the: a their respective.!, Y ) = X0.5 + Y0.5 of Y, What fiscal policy might the follow... While making a decision to purchase one dollar function U ' percent per year also, simplicity. Unplanned inventory = 7500-10000 = -2500 so the business has more inventory than it requires - 700... The depreciation rate is 15 percent per year Illustrate answers with graphs more inventory it.
Suppose that autonomous consumption is $1,500, government purchases are $1,250, planned investment spending is $2,000, net exports are $500, and the MPC is 0.6. Assume that the price level remains unchanged at all levels of real GDP.

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