Reference no: EM131023006
Quiz 4 - practice quiz
1. Use the information below and the simple Keynesian model to answer the following questions.
|
Y
|
T - TR
|
C
|
G
|
I
|
X
|
M
|
S
|
Change in unplanned inventories
|
Direction of Change in real GDP
|
|
100
|
20
|
84
|
50
|
50
|
60
|
40
|
|
|
|
|
200
|
20
|
|
50
|
50
|
60
|
40
|
|
|
|
|
400
|
20
|
324
|
50
|
50
|
60
|
40
|
|
|
|
|
600
|
20
|
|
50
|
50
|
60
|
40
|
|
|
|
Y is real GDP; (T - TR) is net taxes; C is consumption spending; G is government spending; I is investment spending; X is spending on exports; M is spending on imports; and S is household saving.
a. Given the above information, find the consumption function with respect to disposable income, Y - (T - TR).
b. Fill in the missing values in the above table.
c. What is the equilibrium level of real GDP, Y, for this economy?
d. When this economy is in equilibrium, do leakages equal injections? Discuss your answer.
e. Suppose this economy is initially in equilibrium. Calculate the new equilibrium level of real GDP, Y', if government spending increases by $20 while everything else is held constant. Discuss your answer making sure to include the relationship between the change in real GDP and the change in government spending.
|
Which one of the following is a source of cash
: Which one of the following is a source of cash?A decrease in inventoryAn increase in fixed assetsA decrease in long-term debtThe payment of a cash dividendAn increase in accounts receivable
|
|
What supports or services might maximize this outcome
: Summarize research related to the influence of nature versus nurture on the cause of Jefferson's disabilities.
|
|
Compute the total general and administrative expenses
: Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.$23,400.$8,400.$10,000$5,575.$10,075.
|
|
A type of short term loan where the borrower sells
: A type of short-term loan where the borrower sells its accounts receivables to the lender at a discount to face value is called:a compensating balance.an assignment.a letter of credit.factoring.a bond.
|
|
Calculate the new equilibrium level of real gdp
: Suppose this economy is initially in equilibrium. Calculate the new equilibrium level of real GDP, Y', if government spending increases by $20 while everything else is held constant. Discuss your answer making sure to include the relationship betw..
|
|
Explain the relevance of assessing for psychopathy
: Describe when and where in the adjudicative process assessment for psychopathy or antisocial personality disorder may be used, using specific examples.
|
|
Why estimate size of multiplier matter in evaluating effects
: We saw that in calculating the stimulus package's effect on real GDP, economists in the Obama administration estimated that the government purchases multiplier has a value of 1.57. John F. Cogan, Tobias Cwik, John B. Taylor, and Volker Wieland arg..
|
|
Explain the various versions of social contract theory
: Explain the various versions of social contract theory with supporting citations to the textbook and online lectures in correct APA format. Use this APA Citation Helper as a convenient reference for properly citing resources.
|
|
How might heavy public debts lead to insolvency
: An article in the Economist argued that "heavy public debt risks more than just crowding out private investment. It can, in the extreme, bring on insolvency." What does the article mean by "heavy public debts"? How might heavy public debts lead to..
|