Figure: Aggregate Expenditures Curve II Aggregate expenditures (per year) $800 Reference: Ref 11-16 45-degree line AE $2,000 Real GDP (per year) (Figure: Aggregate Expenditures Curve II) The slope of the aggregate expenditures curve in the aggregate expenditures model shown in this figure is: O 45 degrees. O 0.6. O 0.5. O 0.25.
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- Problem 1 The various expenditure categories within the economy are: C = 600+ 0.8Yd | = 800 G = 600 NX = 0 T= 700 Refer to problem 1. Equilibrium Real GDP is O 7200 O 4200 O 1800 O 5500(trillions of 2005 dollars) Aggregate planned expenditure 20 16 12 8 4 0 45° line AE 8 12 16 20 24 Real GDP (trillions of 2005 dollars) In the above figure, at the equilibrium, induced expenditure is O$12 trillion. O $8 trillion. O $4 trillion. O some amount not given in the above answers.(Table) According to the table, when using the expenditure approach, GDP is Category Proprietors' income Capital consumption allowance Federal government purchases of goods and services Compensation of employees Personal consumption expenditures Billions $300 440 200 S00 950 90 60 Corporate profts Exports Gross private domestic investment Rental income State and local government purchases of goods and services Net interest Federal government deficit Imports 500 30 150 100 250 90 O $1,770 billion. O $2,020 billion. O $1,320 billion. O $1,330 billion. The government decides to give tax-exempt status to a new organization whose mission is to award college scholarships to members of the armed forces. In doing so, the government is acting in its role to promote economic growth by O ensuring a stable legal system. O enhancing physical and human capital. O ensuring a stable and secure financial system. promoting free and competitive markets.
- 10:35 PM A O 60 Aggregate Expenditures Schedule 50 Tools 40 C+1 Equilibrium 30 20 10 10 20 30 40 50 Real GDP (billions of dollars) Instructions: In part b, enter your answer as a whole number. In part c, round your answer to 1 decimal place. b. What is the equilibrium GDP for this country? billion c. What is the marginal propensity to consume for this country? Aggregate expenditures (billions of dollars)What is the initial change in consumption if an economy's MPC is 0.75 and there is a decrease in taxes of $1 billion? O $1.75 billion O $1 billion O $1.33 billion O $0.75 billion5 The graph shows aggregate expenditures for the fictitious country of Carpistan. Suppose the government of Carpistan increases government expenditures in order to boost the economy. Move the appropriate curve or curves to show the effect of this increase. Next, place point A to show where actual aggregate expenditures equals planned aggregate expenditures. Aggregate Expenditures (AE) 10 9 5 0 1 3 4 D Real GDP (Y) 16 7 11 YAB AR 2.0 10
- If real GDP is $2200 billion, the GDP deflator is 110, nominal net exports are $100 billion, nominal investment is $200 billion, and nominal government expenditures are $400 billion, what is nominal consumption? 1) $1300 2) $1500 3) $1520 O 4) $1720(4. From 2009 to 2014, Eastlandia experienced large fluc- tuations in both aggregate consumer spending and disposable income, but wealth, the interest rate, and expected future disposable income did not change. The accompanying table shows the level of aggregate con- sumer spending and disposable income in millions of dollars for each of these years. Use this information to answer the following questions. Disposable income (millions of dollars) Consumer spending (millions of dollars) Year 2009 $100 $180 2010 350 380 2011 300 340 2012 400 420 2013 375 400 2014 500 500 a. Plot the aggregate consumption function for Eastlandia. b. What is the marginal propensity to consume? What is the marginal propensity to save? c. What is the aggregate consumption function?ASAP
- The Canadian economy produces a vast array of goods and services, from cars to cannabis Suppose that the hypothetical data for Canada has the folowing national income account data in billions of dollars: govermment purchases (SLOSO personal consumption expenditures (S4800 impors ($370 exports (524OE gross inventment (SL3O) Personal consumption expenditures are approximately what percentage of this economy? Mutple Choic O 70 percent O 60 percant O s percere 75 percent7 Real expenditure in thousands of dollars 6 5 3 2 0 1 Reference: Figure 10-5 O 0.25 O.0.50 2 O 0.75 Refer to the graph above. The mpe equals: O 1.00 3 4 5 6 7 Real income in thousands of dollars AE curveON 102 LEC 850 - Winter 2023 - INTRODUCTION TO MACROEC ard / My courses / ECON 102 (LEC 850 Winter 2023) General / S on 12 ed out of on ve Progress Which of the following changes in personal income tax would lead to the smallest increase in consumption? O a. a $30 000 decrease in taxes, if MPC equals 0.25 O b. a $15 000 decrease in taxes, if MPC equals 0.6 O c. a $20 000 decrease in taxes, if MPC equals 0.5 O d. a $12 000 decrease in taxes, if MPC equals 0.75 O e. e. a $10 000 decrease in taxes, if MPC equals 0.2 Previous page Time left 4:58:21 Last saved at 22:40:19 cross out cross out cross out cross out cros ut Finish attempt ... Quiz nav 1 7 2 8 Finish att