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- 25 1 Calculate the equilibrium level of investment if you have the following equations: C=0.4Yd+20, national income is 1000, government expenditures is 200, tax is 50 Investment =300 O Investment-D350 O Investment3D400 O Investment3D450 O None of the above O12:15 e itc.birzeit.edu 1-Complete the accompanying table. Level of output and income Consumption Saving АРС (GDP = DI) $110 -$15 135 180 15 205 30 230 45 255 60 280 75 305 90 330 105 (a) What is the break-even level of income? How is it possible for households to dissave at very low-income levels? (b) If the proportion of total income consumed decreases and the proportion saved increases as income rises, explain how the MPC and MPS can be constant at various levels of income. II1.3 A Country has following data Consumption Function = 90+0.75Y, Investment = 20 Billion Determine: 1. National Income Equilibrium 2. National Consumption and Saving Consumption in Equilibirum 3. Graph it!
- . If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD Government expenditure = 200MJD, Net exports = 200MJD, so the equilibrium income is equal Options are 3800,2800,1800,4800. Don't copy previous question becuase it is wrong?1. Identify the formula of consumption function & saving function C = _______________ S = _______________ 2. If the consumption function is C = 250 + 0.57Y and investment, I = RM450, calculate the equilibrium income in this two- sector economy. 3. Given, C = 700 + 0.7Yd, compute MPS 4. What is macroeconomic 5. Define principles of microeconomicsThe table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- What is the level of consumption when income is $300 billion? A) $200 billion B) $240 billion C) $210 billion D) $60 billion
- GuldeLine Saving (2 National Income 1. Only one of the lines in this graph does not represent the savings function. It is: A. Line No. 1 B. Line No. 2 C. Line No. 3 D. Line No. 4 2. If the marginal propensity to consume increase which one of the following sentences represent the movement of the savings function. A. from Line No. 2 to line No. 1 B. from Line No. 3 to line No.2 C. from Line No. 2 to line No.3 D. from Line No. 4 to line No.3Refer to the information provided in Table 8.1 below to answer the questions that follow. Table 8.1 Aggegte Income (S billion) ரஜாளாgtiaGbihளl onsumption (Sbilli 50 130 200 125 170 215 260 Refer to Table 8.1. Assuming society's MPC is constant at an aggregate of income of 5300, aggregate consumption would be Select one. Oa. 5325. Ob.5305. O5350. Oa5425.Economics PIODiem set is dde OIT AprTO 1. Let the following equations characterize the economy (note the addition of a tax rate on output): Y = 500 C = 60 + 0.8(Y-T) |= 30 - r G = 100 T = 0.4Y a) Calculate national saving, private saving, and public saving. b) Obtain the mathematical expression for the AD in this particular economy. Draw the graph. c) Determine the equilibrium interest rate (you can use the loanable funds market). Draw the graph for the lonable funds market. d) If Government spending increases to 120, what is the effect on income? Draw the new equilibrium in a graph (old and new in same graph).
- Assume a closed economy where the level of investment is 300 and savings function is s = -30+ 0.15y calculatr the equilibrium level of incomepersonal consumption expenditures (C) and disposable income (Y d): Year C Y d1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save.Assume in a simple economy that thc level of saving is -500 when aggregate ourput equals zero and that the margina! propensity to save is 0.2. Derive the saving function and the consumption function, and draw a graph showing these func- tions. At what level of aggregate ouiput does the consumption curve cruss the 45° line? Explain your answer and show this un the graph.