User Account

All Pages

Define what is the total autonomous expenditure

Assignment Help Macroeconomics
Reference no: EM131620098

Objectives

The purpose of the Unit Exercises is to assess the student's ability to apply the economics concepts learned in the unit to practical problem-solving scenarios.

Instructions

Students are to complete the following exercises in Word (or some other compatible word processor) and submit by 11:00 p.m. on Sunday of

Units 2, 4, 6, 8, 10, and 11.

1. Suppose you are given the following information for an economy without government spending, exports,  or imports. C is desired consumption, I is desired investment, and Y is income. C and I are given by:
C = 1300 + 0.85Y
I = 450

a. What is the equation for the aggregate expenditure (AE) function?

b. Applying the equilibrium condition that Y = AE, determine the level of equilibrium national income.

c. Using your answer from part (b), determine the values of consumption, saving, and investment when the economy is in equilibrium.

2. Consider the simplest macro model with demand-determined output.
The equations are:

C = 150 + 0.8Yd, Yd = Y-T,
I = 400, G = 700,
T = .2Y, X = 130, and
IM = 0.14Y.

a. What is the Marginal Propensity to Consume (MPC) in this model?

b. What is the Marginal Propensity to import?

c. What is the total autonomous expenditure?

d. What is the equilibrium GDP?

Reference no: EM131620098

Questions Cloud

Determine the optimal number of mechanics to be employed : Machines arrive for repair at the rate of six per hour following Poisson. The mechanics mean repair time is 15 minutes, which follows exponential distribution.
What is the average time required to wash a car : Classic Car Care has.one worker who washes cars in a four-step method-soap; rinse, dry, vacuum. The time to complete each step is exponentially distributed.
Identify the divinity names and cultures in columns a and b : Select two myths, each from a different culture, in which the divine role appears. Identify the divinity names and cultures in columns A and B.
Who is umm kulthum : Describe her performance style. How did she change Arab classical traditions and practices? Why did people love her voice so much?
Define what is the total autonomous expenditure : Define What is the total autonomous expenditure, What is the Marginal Propensity to Consume in this model
How many working hours should a customer expect : An analysis of past data indicates that engines can be repaired, on the average, in 2.5 hours, with a variance of 1 hour2.
Determine the arrival of customers at a teller counter : The arrival of customers at a teller counter follows Poisson with a mean of 45 per hour and teller's service time follows exponential with a mean of 1 minute.
Under what theory or theories may luxe be successful : Under what theory or theories may Luxe be successful in a breach of contract action against Betsy? Discuss.
Estimate the steady-state average cost per hour for tools : Suppose that mechanics arrive randomly at a tool crib according to a Poisson process with rate it= 10 per hour. It is known that the single tool clerk serves.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Secured against assets

In bankruptcy A, unsecured creditors receive £0.40 in the pound. A lender is owed £250,000, of which 30% is secured against assets.

  The greek economy is most likely in a period of boom

The fact that unemployment is rising while the labour force participation rate is falling is a sign that the Greek economy might be in recovery.

  Explain how can you use this information to your advantage

You are a pharmacist in a small town. Explain how can you use this information to your advantage.

  Can friendly finance succeed in a suit against suburban

Evergreen Landscapers, Inc., owes Friendly Finance Company $5,000. Evergreen enters into a contract with Suburban Office Park under which Evergreen promises to maintain the landscaping on Suburban's property.

  Elucidate explain why after such unprecedented economic grow

Elucidate explain why after such unprecedented economic growth, technical advance economies still experience economic cycles and stagnation.

  What is level of savings at equilibrium

Let us say that an economy has a consumption function given by C = 900 + 0.9Yd where Yd is the disposable income. There is a lump-sum tax of 90. Investment level is autonomous at 400 and government spending is also constant at 600.

  What the fed should do to stabilize aggregate demand

Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand. Explain what the Fed should do if it wants to stabilize aggregate demand.

  Contract implied-in-law contract

An unwritten, unspoken contract, also known as "a contract implied by the acts of the parties", which can be either an implied-in-fact contract implied-in-law contract, may also be legally binding?

  Consider a bond that promises to pay 100 in one yeara what

consider a bond that promises to pay 100 in one year.a. what is the interest rate on the bond if its price today is 75?

  A explain why a higher marginal tax rate reduces the size

a explain why a higher marginal tax rate reduces the size of the government expenditure multiplier.b suppose government

  How many people were employed

Suppose that a country has a population of 55 million, a labor force participation rate of 66% an an unemployment rate of 5.5% how many people were employed

  What is accounting in basic terms

What is accounting in basic terms. Please be as specific as you can. Thank you and please don't rush to answer if you are not sure.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd