1

# Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300...

## Question

###### Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300...

Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G = 400; G = Government expenditure T = 200; T = Tax revenue Also assume that Yf = Full employment GDP (Potential GDP) = 5,000

8.1. The equilibrium GDP level (income) is _________. Hint: Ye = C+I+G a. 2,850 b. 3,700 c. 3,145 d. 3,800

8.2. At the equilibrium level of output, the aggregate consumption level is: a. 3,100 b. 3,250 c. 3,400 d. 3,625

8.3. At the equilibrium level of output, the aggregate saving level is: a. 550 b. 450 c. 400 d. 350 ￼￼

8.4. The MPC and MPS for the economy is respectively: a. 0.9 and 0.1 b. 0.85 and 0.15 c. 0.75 and 0.25 d. 0.80 and 0.20

8.5. The expenditure multiplier for the economy is: a. 10 b. 8 c. 5 d. 4

8.6. The tax multiplier for the economy is: a. -3 b. -4 c. 4 d. 5

8.7. Given the value of full employment level of GDP above, the GDP gap is ______ a. 1,200 b.1,300 c. 1,400 d. 1,500 Hint: GDP gap is the difference between full employment (potential GDP) and existing equilibrium GDP)

8.8. The government spending needed to bridge the GDP gap you found in statement 8.7 above would be _____________ Hint: It is also called recessionary or inflationary gap depending on whether the economy is in state of recession or inflation. a. 400 b. 350 c. 260 d. 250

#### Similar Solved Questions

##### If a polynomial function is of degree n, then the graph will have n-1 relative maximum and minimum points
if a polynomial function is of degree n, then the graph will have n-1 relative maximum and minimum points.Is this: Always True, Sometimes True, or Never True?It's really confusing me....
##### Which of the following statements is not true about projectile motion? ??
Which of the following statements is not true about projectile motion? ??Projectile motion is two dimensional. ?The faster an object is moving in the x direction, the faster it will move in the y direction. ?The horizontal and vertical components of a moving object are independent of one another. ?P...
##### Part A Figure < 1 of 1 If the beam is subjected to a bending moment...
Part A Figure < 1 of 1 If the beam is subjected to a bending moment of M = 2 kN.m, determine the bending stress developed at point A. (Figure 1) Express your answer to three significant figures and include the appropriate units. Enter negative value in the case of compression and positive in the ...
##### . A firm has the financial information shown below. The average tax rate is 30%. The...
. A firm has the financial information shown below. The average tax rate is 30%. The plowback ratio is 50%. Calculate OCF, NCS, change in NWC, CFS, CFC, and FCF. Income Statement Revenues Cost of Goods Sold Other operating expenses Depreciation expense EBIT Interest Expense Taxable Income 2019 \$20,0...
##### Select the best answer for each question. 1. A 46-year-old man has been taking clonidine for...
Select the best answer for each question. 1. A 46-year-old man has been taking clonidine for 5 months. For the last 2 months, his blood pressure has been normal. During this office visit, he tell stop taking the drug. What is the nurse's best response? s the nurse that he would like to a. I'...
##### Find the average annual growth rate of the dividends for each firm listed in the following...
Find the average annual growth rate of the dividends for each firm listed in the following table: TA Data Table . A (Click on the following icon S 2 Firm Loewen Morse Huddleston Meyer 006 \$1.02 \$1.00 \$1.50 \$2.00 in order to copy its contents into a spreadsheet.) e Dividend Payment per Year 2007 2008...
##### Please answer all of questions. If possible, add explain 8. Competition between individuals results from a....
Please answer all of questions. If possible, add explain 8. Competition between individuals results from a. heritable characteristics and variation b. stable population sizes and heritable characteristics c. high potential population growth and heritable characteristics d. high potential population ...
##### How find the values of x in: #(1−tan(x)) / (1+ tan(x))=1+sin(2x)# ?
How find the values of x in: #(1−tan(x)) / (1+ tan(x))=1+sin(2x)# ?...
##### With vertical load approximate method find moments at A, C, and E . . 3.5 kN/m...
with vertical load approximate method find moments at A, C, and E . . 3.5 kN/m გგ0 ფენებ da>...
##### 4. A Foucault pendulum is used to demonstrate the rotation of the Earth. They can usually...
4. A Foucault pendulum is used to demonstrate the rotation of the Earth. They can usually be found in science museums. A certain pendulum has a 120-kg bob swinging on a 16.2-m-long wire with a maximum amplitude of 6.3°. A. Sketch the pendulum at its maximum displacement and label all known quant...
##### A) Find a 95% confidence interval for estimating the difference in mean exposure to radioactivity for...
a) Find a 95% confidence interval for estimating the difference in mean exposure to radioactivity for the two years. b) Perform a hypothesis test to test the claim that radioactivity has been reduced. What are your hypotheses? What is your test statistic? 4. (10 pts) A study is conducted to estimate...
##### How do you integrate #intxsec^-1(x)dx#?
How do you integrate #intxsec^-1(x)dx#?...