Use the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 1. Calculate total autonomus spending for economy X. 2. Calculate the multiplier for economy X.
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Use the following information on economy X to answer the questions below.
Consumption function:
C = 250 + 0.8Y Investment spending:
I = 150 Government spending:
G = 500 Exports of goods and services:
X = 200 Imports of goods and services:
Z = 150 Proportional tax rate: t =25%
Full employment level of income = 3575
1. Calculate total autonomus spending for economy X.
2. Calculate the multiplier for economy X.
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- Use the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 a) Calculate total autonomus spending for economy X. b) Calculate the multiplier for economy X. c) Calculate the equilibrium income for the economy. d) Calculate the change in government spending required to reach full employment level of income.Use the following information on economy X to answer the questions below.Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25%Full employment level of income = 3575 1. Calculate the equilibrium income for the economy. 2. Calculate the change in government spending required to reach (3) full employment level of income.Use the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 Calculate the change in government spending required to reach full employment level of income.
- Use the following information on economy X to answer the questions below. Consumption function: C = 350 + 0.6Y Investment spending: I = 250 Government spending: G = 400 Exports of goods and services: X = 300 Imports of goods and services: Z = 150 Proportional tax rate: t =25%(Note: Show all calculations and round off to 2 decimal places).Q.4.1.1 Q.4.1.2Q.4.1.4 Q.4.1.5Calculate total autonomous spending for economy X. (3) Calculate the multiplier for economy X. (3)Calculate the budget surplus or deficit at the equilibrium level of income. (3) Calculate the change in equilibrium income if the government decides to (3) increase expenditure to R500.Q.4.1.3Calculate the equilibrium income for the economy. (Hint: Use the multiplier method).(3)Q.4.1 Use the following information on economy X to answer the questions below. Consumption function: C = 250 + 0.8Y Investment spending: I = 150 Government spending: G = 500 Exports of goods and services: X = 200 Imports of goods and services: Z = 150 Proportional tax rate: t =25% Full employment level of income = 3575 Q.4.1.1 Calculate total autonomus spending for economy X. Q.4.1.2 Calculate the multiplier for economy X. Q.4.1.3 Calculate the equilibrium income for the economy.Consider a hypothetical economy described by the following information: C = 500 = 100 G = 200 T = 80 mpc = :0.6 Task 1. Answer the following given the information above. A. Set up the consumption function of this economy. Simplify your answer. B. Compute for the equilibrium income. C. Compute for the value of the multiplier. D. Compute for the change in equilibrium income if the government decreased its expenditure to 100. E. Derive the savings function of this economy. F. Compute for the value of savings suppose the economy is in equilibrium.
- Consider an economy described by the following equations: C = 300 + 0.90 (Y – T) (Consumption) I = $200 (Investment) G = $300 (Government spending) T = $200 (Taxes) Determine the equilibrium level of national income. Suppose government spending increases to $400. What is the new level of income? What is the government spending multiplier? Suppose taxes increase to $300. What is the new level of income? What is the government tax multiplier? Based on your answers to (b) and (c), does the balanced budget multiplier theorem hold?Consider the hypothetical country of Kejimkujik. Suppose that national income in Kejimkujik is $300 billion, households pay $100 billion in taxes, household consumption is equal to $160 billion, and the marginal propensity to consume (MPC) is 0.6. On the following graph, use the blue line (circle symbol) to plot the economy's consumption function. Consumption Function050100150200250300350400450500500450400350300250200150100500CONSUMPTION (Billions of dollars)DISPOSABLE INCOME (Billions of dollars) Suppose now that Kejimkujik’s national income increases to $330 billion. Assuming the amount paid in taxes is fixed at $100 billion and that MPC = 0.6, what is the new amount of household consumption? $148 billion $219.4 billion $220.6 billion $178 billionSuppose an economy is represented by the following equations.Consumption function C = 200 + 0.8YdPlanned investment I = 400Government spending G = 600Exports EX = 200Imports IM = 0.1YdAutonomous Taxes T = 500Marginal Tax Rate t=0.2Planned aggregate expenditure AE = C + I + G + (EX - IM) By using the above information calculate the equilibrium level of income for this economy and explain why fiscal policy becomes less effective in an open economy
- Q1:You are given the following income-expenditures model for an economy : Consumption C = 300 + .64Yd Tax (T) = $60 Government expenditure G = $100 Investment (I) = $120 From above data calculate the follows: 1. Equilibrium level of income 2. At the equilibrium level of income, what is the amount of consumption?Silesia You are provided with the following information about an imaginary economy called Silesia. Use the information provided in the table to answer the questions below. Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption 150 Investment Expenditure 300 Full-employment output 2040 Marginal propensity to consume 0.75 Marginal propensity to import 0.15 Source: Bester, N. 2017. Tax rate 0.25 5.1 Derive and calculate the consumption function for the data provided. Show all formulas and calculations used. 5.2 Calculate autonomous spending. Show all formulas and calculations used 5.3 Calculate the multiplier. Show all formulas and calculations used. Round off your final answer to 1 decimal.Suppose an economy is described by the following equations: Y = C + I + G + X – M C = 14 + 0.60Yd I = 20 G = 20 X = 15 M = 5 +0.1Y T = 20 + 0.4Y Where Y is domestic income Yd is private disposable income C is aggregate consumption spending T is government tax revenue I is investment spending G is government spending E represents exports M represents imports of goods and services. With a help of a diagram explain and discuss life cycle hypothesis.
