Illustrate equilibrium level of aggregate expenditure

Assignment Help Business Economics

Reference no: EM1367548

Q. An economy has a break-even point of $3,000. For every additional dollar earned by households, they spend 80 cents. Government purchases $596 in goods and services and also spends $742 in transfer payments. Businesses invest $53 in plant, equipment and inventory. Foreign buyers purchase $60 and buyers from United States purchase $56 from foreign countries. (All spending and income figures are in billions.)

1. Illustrate what is marginal propensity to consume in this economy?

2. Illustrate what is multiplier in this economy?

3. Illustrate what is equilibrium level of GDP in this economy?

4. Illustrate what is equilibrium level of Aggregate Expenditures in this economy?

5. At equilibrium, illustrate what is level of Consumption in this economy?

6. By how much will equilibrium change if foreigners increase their expenditures by $4?

Reference no: EM1367548

Questions Cloud

Illustrate economic profits made by a competitive industry : How could you graphically illustrate economic profits made by a perfectly competitive industry, a monopolist industry and a monopolistic competitive industry.

Theory of purchasing power parity : Assume the dollar-pound rate equals $.5 per pound. According to purchasing power parity theory, determine the dollar's exchange rate under each of the following scenarios?

How to find the height of cliff : hear the sound of it hitting ground at the foot of the cliff. Ignoring air resistance, how high is the cliff if the speed of sound is 330 {rm m/s}.

Future threats to network security - research paper : Deliver a research paper and presentation based on your research - Future threats to network security and planning for those threats

Illustrate equilibrium level of aggregate expenditure : Illustrate what is equilibrium level of Aggregate Expenditures in this economy. At equilibrium, illustrate what is level of Consumption in this economy.

Find out the magnitude and direction of the electric field : State the maximum height in terms of a, t_1, and/or g. Note that in this problem, g is a positive number equal to the magnitude of the acceleration due to gravity.

Describe ambiguity in proposed algorithm : Describe the distinction between an ambiguity in a proposed algorithm and an ambiguity in the representation of an algorithm. Describe how the use of primitives helps remove ambiguities in an algorithm's representation.

Effective nurse educator-traits to use evaluation process : Can you describe an example of how he or she facilitated your learning? These are traits to use in the evaluation process.

Illustrate percentage does equilibrium cost level differ : Illustrate what percentage does equilibrium cost level differ from its initial value if output increases to Y = 106 (and r remains at 0.10).

User Account

All Pages