Consider an economy described by the following:C= $3.15 trillion1 = $1.2 trillionG= $2.8 trillionT= $3 trillionf=0.5mpc=0.8d=0.2x=0.2NX = $-0.5 trillionThe simplified expression for the consumption function is:O C= 3.15+(1-0.8)YO C=0.75+(1-0.8)YO C=3.15+0.8YO C=0.75+0.8Y

Here's the breakdown of the terms in the expression:C: Represents consumption0.75: This is a…

Answered: Consider an economy described by the…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.3P

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The accompanying graph represents the aggregate consumption function for the small island nation of Pineapple Paradise. The people of Pineapple Paradise expect their future 10,000 disposable income to increase. Use the graph to show an 9,000 increase in consumption expenditures. 8,000 7,000 What is the new level of aggregate autonomous consumer ,000 Aggregate Consumption Function spending? ,000 $2000 4,000 $4000 3,000 $1000 O $3000 2,000 1,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Disposable Income Çonsumer Spending,
assume you are given a $100 raise, and decide to save $20 of that money. also assume that if you make zero income in a year, you will still spend $7000. a.) what is your consumption function? b.) if you earn $20000 in a year how much will you spend? c.) will you be able to save while earning the above income?
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Sa = -5000 and mpc or c = 0.8 Formulate the consumption function & interpret the function. Formulate the savings function & interpret the function.
DI (1) $0 10 с 20 30 401 50 DI (2) с DI (3) $4 $0 $65 11 80 125 18 160 185 25 240 245 32 320 305 80 74 39 400 365 100 92 (Advanced analysis) Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. When plotted on a graph, the vertical intercept of the consumption schedule in economy (3) is ______and the slope is O $2; 0.18 O minus $2; 0.9 O $100; 0.5 O $2; 0.9 C $0 20 40 60 $2 20 38 56
Real GDP C G X-M 2500 1430 540 400 90 2400 1360 540 400 100 2300 1290 540 400 110 2200 1220 540 400 120 2100 1150 540 400 130
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You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)
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Consider an economy described by the following: C= $3.15 trillion 1 = $1.2 trillion G= $2.8 trillion T= $3 trillion f=0.5 mpc=0.8 d=0.2 x=0.2 NX = $-0.5 trillion The simplified expression for the consumption function is: O C= 3.15+(1-0.8)Y O C=0.75+(1-0.8)Y O C=3.15+0.8Y O C=0.75+0.8Y