Refer to the information provided in Table 1 below to answer the questions that follow. Aggregate Income ($ billion) 0 400 800 1,200 1,600 Aggregate Consumption ($billion) 200 500 800 1,100 1,400
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The equation for the aggregate consumption
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- Use the information in the table to answer the following questions. All numbers are in billions of 2012 dollars Planned Government Net Exports Real GDP (Y) Consumption (c) Investment (I) Purchases (G) (NX) $5,000 $4,500 $500 $700 - $500 S6,000 $5,300 $500 $700 - $500 S7,000 $6,100 S500 $700 - $500 $8,000 $6,900 $500 $700 - $500 S9,000 $7,700 S500 $700 - $500 The equilibrium level GDP is $ billion. The MPC is (enter your response to two decimal places). Suppose that net exports increase by $400 billion. Using the multiplier formula, determine the new level of GDP. A $400 billion increase in net exports leads to a change in spending of $ billion, so the new level of GDP will be $ billion.Consider the data presented in the table: Actual aggregate expenditure or output Consumption Planned (Y) (C) (billions (billions of $) of $) 500 300 600 350 700 400 800 450 900 500 Unplanned Government Net investment spending exports (inventory (NX) change) investment (G) (billions (billions (billions (billions of $) of $) of $) of $) 100 -100 -50 S ol C 150 150 C 150 S 150 C 150 C 100 100 C 100 C 100 C Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Instructions: Enter the values into the table above. 50 50 € 50 C 50 S 50 S a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. correct. Instructions: Enter the values into the table above. If the value is negative, then be sure to enter a minus sign. b. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number. Answer is…(o) Calculate MPC, MPS and APC from the following data: Income (Y) Consumption 100 95 110 104
- Question 4Select the information you need from the following figures and calculate the nationalincome for the year shown:Government Spending R18 000Depreciation R6 000Investment spending R35 000Net foreign spending R12 000Indirect taxes R14 500Net factor payments (R4 000)Consumer spending R30 000Subsidies R4 000Refer to Table 6.3 below, use the expenditure approach to calculate gross domestic product from the following set of numbers. Consumption $5,000 Investment $1,000 Depreciation $600 Exports $500 Government purchases $1,000 Saving $1,100 Imports $7005. Given the following income data, please answer the questions below. Real GDP Consumption Ig Government Exports $5000 $12000 $7000 $7000 $5000 $12000 $5000 $12000 $5000 $12000 $7000 $7000 $5000 $12000 $7000 $100000 $116000 $140000 $148000 $180000 $180000 $220000 $212000 $260000 $244000 Imports $16000 $16000 $16000 $16000 $16000 a. Solve for net exports in each row. b. Solve for aggregate expenditures (AE) in each row. c. State the value for the equilibrium GDP. d. If imports were to increase by $16000 so they are now equal to $32000, solve for net exports again. e. With this new export value, solve for aggregate expenditures in each row. f. State the value for the new equilibrium GDP. g. Solve for the multiplier (you can solve for either the actual or simple multiplier).
- Year GDP Disposable Income Consumption Imports 2036 $1050 $840 $830 $111 What is the marginal propensity to import? 2037 $1000 $800 $800 $100 Round to two decimal places. If your answer is 0.064 (i.e., 6.4%) enter .06. If your answer is 0.065 (i.e., 6.5%) enter .07. Do not forget to enter the negative sign, if appropriate.The following data relate to an emerging African country.Item Value('000) KSHSGNP 8,000,000 Depreciation 100,000Indirect Business Taxes 80,000Gross Investment 400,000Total population 30,000Consumption 10,000Personal Income Taxes 800Excise duty 80Personal Income 89,000Net factor incomes from abroad 200,000 Using the above data, calculate: Net National Product and GNP per capita Net investment and Disposable personal income Gross domestic productSuppose you are given the following data for a particular economy (unit: Millions of Euros):Gross National Income mp (GNImp) =1650Investment (I) = 220(Iliq) Net investment = 210Private consumption(C) =1100Net External Income (NEI) = 0Net Indirect Taxes (NIT) = 231Public Spending (G) = 363 Calculate: a) Balance of Goods and Services or Net Exports (NX) and Amortizations/Depreciations (A). b) Net National Product at Base Prices (NNPbp) and Net Domestic Product at Base Prices (NDPbp)
- National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal Income2010 2011 2012 2013 2014 $700 $600 $800 $750 $1000 a. Plot the aggregate consumption function. b. The Marginal Propensity to Consume= c. The Marginal Propensity to Save = d. The Aggregate Consumption formula is $760 $680 $840 $800 $1000TOTAL EXPENDITURE (Billions of dollars) 500 475 450 425 400 375 350 325 300 H 300 425 REAL GDP (Billions of dollars) 325 350 375 400 If Real GDP is $425 billion, inventories 450 475 I 500 (TP = Real GDP) TE the firms production, and Real GDP