Assume the following for the economy of a country: • Consumption function: C = 60 +0.75Yd • Investment: 1 = 77 . Government spending: G = 53 .Net taxes: T=0.2Y-25 • Disposable income: Y =Y-T • Equilibrium: Y=C+I+G Equilibrium income is $ (Round your response to one decimal place.)
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- n year 2018, the government of Qatar spent is 143 billion Qatari Riyal (the national currency of Qatar). The GDP of Qatar in the same year is 1,121 billion Qatari Riyal. Qatar's desired consumption and desired investment during the year can be summarized by the following equations: Cd=1,000-5,000r Id=800-3000r Where Cd is the desired consumption in billions of Qatari Riyal, Id if the desired investment in billions of Qatari Riyal, and r is the real interest rate in decimal form. What is the equilibrium real interest rate r* in %? round to at least 2 decimal placesSuppose GDP in this country is $1,540 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases (GG) Taxes minus Transfer Payments (TT) 455 Consumption (CC) 700 Investment (II) 490 Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = = (t-g, y-t-i, c-t,y-c-t) = = million Public SavingPublic Saving = = (t-g, y-t-i, c-t, y-c-t) = = million Based on your calculations, the government is running a budget (surplus, deficit) .What is the relative importance of consumption spending (C) in aggreagte demand and some factors that affect it? What is the relative importance of investment spending (I) in aggreagte demand and some factors that affect it? What is the relative importance of government spending (G) in aggreagte demand and some factors that affect it? What is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?
- Question 31 5 points Save Answ In year 2018, the government of Qatar spent is 143 billion Qatari Riyal (the national currency of Qatar). The GDP of Qatar in the same year is 1,121 billion Qatari Riyal. Qatar's desired consumption and desired investment during the year can be summarized by the following equations: cd = 1,000 – 5,000r, || /d = 800 – 3000r, %3D cd is the desired consumption in billions of Qatari Riyal, 7º if the desired investment in billions of Qatari Riyal, and r is the real interest rate in decimal form. where What is the equilibrium real interest rate, r*, in %? Round your answer to at least 2 decimal places. (E.g. 12.3456% should be entered as 12.35)14. Calculate Equilibrium GDP (Y*) in each of the following situations (IP is Autonomous Planned Investment): (a) C 50+.75(Y-10), IP = 100, G=20, NX = -15. (b) a = 10, MP C = .8, T10, TR= 5, IP=50, G = 40, NX = 0. (c) a = 15, MP C .85, T = 15, TR= 10, IP= 55, G=45, NX = 5. (d) The MPC is 0.75, Autonomous Consumption is 100, Autonomous Planned Investment is 80, Government Spending is 50, Net Exports are -20, Lump-sum Taxes are 50, and Transfer Payments are 20.Macmillan Education WORK IT OUT LaunchPad For interactive, step-by-step help in solving the following problem, vIsitLaunchPad by using the URL on the back cover of this book. The accompanying table shows gross domestic product (GDP), disposable income (YD), con- sumer spending (C), and planned investment spending (IPlanned) in an economy. Assume there is no government or foreign sector in this economy. Complete the table by calculating planned aggre- gate spending (AEplanned) and unplanned inven- tory investment (IUnplanned). 13. а, GDP YD C IPlanned AEPlanned lunplanned (billions of dollars) $0 $0 $100 $300 400 400 400 300 800 800 700 300 1,200 1,200 1,000 300 1,600 1,600 1,300 300 2,000 2,000 1,600 300 2,400 2,400 1,900 300 ? 300 2,800 2,800 2,200 3,200 3,200 2,500 300 b. What is the aggregate consumption function? c. What is Y*, income-expenditure equilibrium GDP?
- Assume an economy where spending for each sector is: Household: C = 800 + 0.95Q Business: I = 3000 Public: G = 4000, Tr = 7000, Tx = 1000 + 0.3Q Foreign: X = 1700, Im = 200 + 0.165Q Solve for: Household SavingsSuppose GDP in this country is $480 million. National Income Account Value (Millions of dollars) Government Purchases (GG) 150 Taxes minus Transfer Payments (TT) 180 Consumption (CC) 225 Investment (II) 105 Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private SavingPrivate Saving = (YTI, TG, YCT) = = ?million Public SavingPublic Saving = = (CT, TG, YCT, YTI) = = $millionSuppose GDP in this country is $660 million. Enter the amount for government purchases. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Private Saving = Complete the following table by using national income accounting identities to calculate national saving. In preceding table. National Saving (S) = $ Public Saving = $ = $ Value (Millions of dollars) Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. million million million 195 300 210 calculations, use data from the Based on your calculations, the government is running a budget
- Consumption expenditure (trillions of 2012 dollars) 12+ 10 8 6 4 2 0 CF₁ 3 6 9 12 Disposable income (trillions of 2012 dollars) Note: If the image does not appear, click here for a PDF version. an increase in the real interest rate CFO an increase in disposable income an increase in wealth an increase in expected future income a decrease in disposable income CF₂ Refer to the Figure above. Which of the following events could result in the consumption function shifting from CFO to CF2?Which of the following is a leakage from the circular flow of income and expenditure in South Africa? Select one: a. A decision by a major supermarket chain to sell Danish beer. b. The sale of export fruit to the European Union. c. Government purchases of textbooks for state-run schools. d. Investment by South African Breweries in a new brewery. e. Defence expenditure by the South African government, via contracts with local military suppliers.4) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (I) from the following information (all variables are in billions of dollars). National income Y = 5,200 Disposable income Consumption Budget Deficit Net Exports YD = 4,400 C = 4,100 BD = 150 NX = 110