The following diagram represents an economy in which government spending increases. PPF PPF2 C2 (0,0) Leisure, / -G2 What happens to the equilibrium wage and to GDP? Equilibrium wage: increases GDP: increases O Equilibrium wage: increases GDP: falls O Equilibrium wage: falls GDP: falls O Equilibrium wage: falls GDP: increases Consumption, C
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- A consumer expenditure survey reports the following information on consumer protein spending: Fish Chicken Beef Multiple Choice Multiple Choice 0.9 percent 1.4 percent Price $ 5.80 1.8 percent $3 $ 3.10 Using 2019 as the base year, by how much does a "cost of protein" index decrease between 2019 and 2020? 3.6 percent 2019 Quantity 5 14 7 Using 2019 as the base year, by how much does a "cost of protein index decrease between 2019 and 2020? Price $7 $ 1.50 $5 2020 Quantity 6 12 10 GGiven the macro economic data below, draw a graph to illustrate if there is arecessionary gap in the given economy.Real GDP $1000BConsumption (100K is Autonomous) $600BInvestment $100BGovernment Spending $200BExport $50BImport $50BMarginal Propensity to Consume 0.50 AD (Expenditure) 45 degree AD = AS $ 1000B AS (Real GDP) a. Calculate the size of the recessionary gap in the economy. b. What would happen to the recessionary gap if the government cut incometaxes by $50B? c. What would happen to the recessionary gap if the Fed increased discountrates? Explain your answer.The table below gives date about the economy of countryX, answer the question below given the provided information. lg AE GDP=Y DI G M 40 10 30 15 15 60 10 30 15 15 80 10 30 15 15 100 10 30 15 15 120 10 30 15 15 140 10 30 15 15 160 10 30 15 15 a. Fill in the blanks in the table if T=20 and C= 10+0.75(Y-T) b. What is the equilibrium level of income (GDP)? c. What are the equilibrium values of consumption and saving? d. If taxes increase to 30, what is the new equilibrium GDP?
- How does the increase in interest rates raise the chances of a recession? How can we expect the increase in interest rates to affect the consumption of the poorest 20% and richest 20% of households?What is on the axes of an expenditure-output diagram?Suppose you have the following disposable income and consumption data for a country, as shown in the table below Disposable income and Consumption BENp e e (dllar 13,000 227,000 3,400 E4,300 1,000 AUsing the information in the table, graph the consumption schedule for this country Instructions Use the tool provided C' to plot the consumption line polnt by point points total. Use the tool Equnibrium to indicate where consumption equals disposable income. Consumption Schedule Conumption (dollarn) 21.000 lave 27000 26000 25000 24.000 23,000 22,000 21000 20,000 20,000 22000 26.000 24.000 28,000 Disposable income (dollars) &What is the stope of the consumpton schedule? Instructions Round your answer to 1 decimal place
- Find equilibrium GDP using the following macroeconomic modelThe figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal place. AS AD LAS 340 360 380 400 420 440 460 480 500 520 Price level a. The size of its recessionary gap is $ b. The size of this gap as a percentage of its actual GDP isExplain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declines