Fetermine equilibrium output, the mpc and mps

Assignment Help Macroeconomics

Reference no: EM1373755

1. Suppose that the level of investment is $16 billion and independent of level of total output, complete the accompanying table and estimate the equilibrium levels of output and employment in private closed economy. Determine the sizes of the MPC and MPS?

Possible Levels Real Domestic Consumption, Savings,
of Employment, Output (GDP=DI) Billions Billions
Millions Billions

40 $240 $244 $________
45 260 260 ________
50 280 276 ________
55 300 292 _________
60 320 308 ________
65 340 324 ________
70 360 340 ________
75 380 356 ________
80 400 372 ________

2. Using the consumption and saving data in question 1 and assuming investment is $16 billion, what are saving and planned investment at the $380 billion level of domestic output? What are saving and actual investment at that level? What are saving and planned investment at the $300 billion level of domestic output? What are the levels of saving and actual investment? Use the concept of unplanned investment to explain adjustment toward equilibrium from both the $380 billion and the $300 billion levels of domestic output.

Reference no: EM1373755

Questions Cloud

Market structure, market equilibrium, and unemployment : Good W and Y are made with intermediate goods A & B. The market value of A is $10 and the market rate of B is $13. The market value of W is $23, and the market rate of Y is $4.

Calculate the marginal product of labor : According to the table above, if the wage rate is $500 and the price of output is $5, how many workers should the company hire?

Reduce the unemployment rate and expand the economy : What measures the fed should take to decrease the unemployment value and expand the economy. Remember that the answer has to deal with monetary policy,

Plot a drama : Why are Mrs. Popov and Mr. Smirnov both so stubborn in their attitudes toward the opposite sex and justified their attitudes in your opinion

Fetermine equilibrium output, the mpc and mps : Suppose that the level of investment is $16 billion and independent of level of total output, complete the accompanying table and estimate the equilibrium levels of output and employment in private closed economy.

United states increasing the tariff on automobiles : Assume the US increases tariff on automobiles imported from Germany and other foreign nations. Determine the effect of this tariff-rate increase on

Find the probability - mean starting salary : What is the probability that the mean starting salary is between $31,000 and $33,000 - Graduates from a graphic arts course at a community college have a mean starting salary

Types of unemployment : Explain the three types of unemployment and what types of government programs would be most effective in combating each type of unemployment?

Government budget deficit : Determine what is a government budget deficit and how does a federal budget deficit affect the economy?

User Account

All Pages