Macroeconomics Answers

question
consider a closed economy to which the keynesian-cross analysis applies.
consumption is given by the equation C =100+2/3(Y-T),where Y represents income and T represents taxes. planned investment is 200 a are government spending and taxes.
a. if y is 1500, what are planned aggregate expenditures? what is inventory accumulation or deaccumulation? should equilibrium Y be higher or lower than 1500?(equilibrium; hint; planned expenditure=Y, and inventory =Y-planned expenditure)

b. what is the planned expenditure function? what is equilibrium level of income ?
show your results in diagram clearly indicating the intercepts and equilibrium values.

c. what are equilibrium consumption, private saving, public saving, and national saving?hint:private saving=Y-C-T

public saving=T-G

equilibrium saving=Y-C-T

d. how much does equilibrium income decrease when G is reduced to 50?
what is the multiplier for government spending?

Evaluate as accurately as you can the manner in which each of the following individual would be affected by fairly rapid inflation.

(i) A department store assistant
(ii) A car assembly line worker
(iii) A heavily indebted farmer
(iv) A retired business person whose current income is from interest on government bonds.
(v) The owner of an independent corner shop.

c=100+0.9yd
i=100
g=200
t=160
nx= -200
y=?

why is the retail market for pcs more competitive than monopoly?

An economy’s marginal propensity to consume out of disposable income is 0.75, its
marginal and average tax rate is 0.15, and its marginal and average propensity to import
is 0.15. What is the increase in government expenditure needed to prevent a fall in
equilibrium income of 20 billion Dollar?

Hi experts.,,
Please help me as fast as possiple because i want the answer urgent.

Consider an economy with the following characteristics (all variables measured in
billions of US DOLLAR
· The households behave such that the consumption function is:
· C = 5 + 0.8 (Y-T), where Y- T = disposable income and T = Tax.
· The government spending (G) = 7 and Tax (T) = 0.2Y.
· The business sector investment is: I = 6,
· Exports (E) = 4 and Import (M) = 2 + 0.14Y
a) Find the equilibrium expenditure
b) Suppose that the government increases its purchases of goods and services by 2 billion$
i) What is the new equilibrium expenditure?
ii) What is the multiplier value?

An economy’s marginal propensity to consume out of disposable income is 0.75, its
marginal and average tax rate is 0.15, and its marginal and average propensity to import
is 0.15. What is the increase in government expenditure needed to prevent a fall in
equilibrium income of 20 billion Dollar?

if the unemployment insurance is increase, the long run phillips curve will shift leftwards. do you agree

Assume that the banking system has total reserves of $200 billion. Assume also that required reserves are 20 percent of demand deposit and that banks hold no excess reserve and house hold hold no currency.

1. Find the money multiplier and money supply.
2. If the central bank now reduce required reserve to 10 percent of deposits, what will be the changes in reserve, money supply, and money multiplier?