Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Given the following information for the Macro Economy answer the following questions. In this economy we have an MPC equal to 0.80, Autonomous Consumption equal to $800 billion and a Planned Investment equal to $200 billion. (a) Fill in the Consumption, Saving, Planed Investment and Aggregate Expenditures columns in the table below (the numbers are all in billions of dollars). Income (Y) Consumption (C) Saving (S) Planned Investment (I) Aggregate Expenditures (AE) $0 $0.00 $0.00 $0.00 $0.00 $1,000 $800 $200 $200 $800 $2,000 $1600 $400 $200 $1400 $3,000 $2400 $600 $200 $2000 $4,000 $3200 $800 $200 $2600 $5,000 $4000 $1000 $200 $3200 $6,000 $4800 $1200 $200 $3800 $7,000 $5600 $1400 $200 $4400 $8,000 $6400 $1600 $200 $5000 $9,000 $7200 $1800 $200 $5600 (b) Determine the equilibrium level of Income (Y). Please state the reason for your answer. The equilibrium level of income is $5000.00 this level gives the most in savings that is more efficient for this situation. (c) Calculate the Spending Multiplier for this economy (show how you got your answer). Spending multiplier = 1/MPS=1/1-MPC (d) State in one sentence what your answer in (c) tells us about any new spending that takes place in the economy. (e) Using the Spending Multiplier, determine the change in Planned Investment needed to get this economy to be in equilibrium at Full Employment if the Full Employment Level of Income is $8,000 billion. Please show your work and state exactly what your answer is.
Current annualized yields on 1 year US treasury securities are only .28%....while current annualized yields on 2year US treasury securities are .69% (note you may assume that both 1 and 2year securities in this example are “0” coupon securities with ..
the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, explain by how much could the total money supply in the economy expand in response to Tracy"s initial cash deposit of $500.
Alter Bridge Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $640,000. Fixed assets are $490,000 and sales are projected to grow to $730,000. How much in new fixed assets are required to support this g..
Cost-Benefit Analysis of a Waste water Treatment Project Before you start working on this problem you need to develop some parameters (numbers). The City of Bintuli is a thriving center of commerce and industry in the Republic of Kabastan. The main i..
In 2014, Thomas Piketty came out with a popular book, “Capital in the Twenty-First Century.” In it was a model not unlike the Solow growth model, discussing the long-run implications for the capital-to-income ratio, k/y. The traditional Solow growth ..
q.use the following table to answer questions a-c.output q0 1 2 3 4 5 6total costtc36 45 52 61 74 91 110a. what is the
Since under price leadership by the dominant firm, the firms in the industry following the leader behave as perfect competitors or price takers by always producing where the price set by the leader equals the sum of their marginal cost curves.
Argentina and New Zealand each produce wheat and mutton under conditions of perfect competition, as shown on the accompanying production possibilities curves. What is the opportunity cost of producing each good in Argentina? Explain how international..
Why might variations in the dollar's value in terms of other currencies cause the trade deficit to move independently from the changes in the government budget deficit.
Why doesn't the United States just give its chop surpluses to poor countries? What problems might such an approach Crete? If two-third of all U.S. farms fail to earn a profit, why do they stay in business? You need a government permit (allotment) to ..
Read Chris Tilly, “Shaking the Invisible Hand” (Real World Micro, article 1.2). What is the “Invisible Hand” theory? What are the political implications? List some of the assumptions made by economists who believe in the “invisible hand” and oppose g..
The two firms have the same demand curve P=100-4Q, Marginal cost of Firm 1 is 5 and for firm 2 is 10.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd