Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help answering these questions, please input the answers where *** is. Number 14 and 14.2 also have MC question! Question 1. The Aggregate

I need help answering these questions, please input the answers where *** is. Number 14 and 14.2 also have MC question!

image text in transcribed
Question 1. The Aggregate Expenditures Models 1.1 Consider the Closed Economy with no Government Participation Planned Expenditures: AE = C + I Consumption: C = 336 + 0.72 (Y) Gross Investment: 1 = 586 1. Write the Personal Savings equation as: $ = ****** * ****** (Y). . Calculate the Break-Even disposable income: ****** 3. Write the Closed-Economy Aggregate Expenditures equation as: AE = *#+*#* (Y). 4. Calculate the equilibrium output (Y) for the Closed Economy #*#*#* 5 . Calculate the expenditures multiplier for the Closed Economy. *#**#* . Calculate Personal Consumption expenditures (Ce) in equilibrium. **#** * 1.2 Consider the Open Economy with Government Participation (i.e. the Mixed Economy): Planned Expenditures: AE = C+I + G+ X - IM Consumption: C = 336 + 0.72 (Y- T) Net Tax Revenue: T = 119 + 0.2 Y Gross Investment: I = 586 Government Expenditures: G = 674 Exports: X = 852 Imports: IM = 132 + 0.07 Y Potential Output: Yp = 4,682 7. Write the Aggregate Expenditures equation as: AE =#***** + ****#* (Y) 8. Calculate the Expenditures Multiplier for the Mixed Economy. #*#*#* 9. Calculate the Autonomous Tax Multiplier for the Mixed Economy. *#**** 10. Calculate the Balanced-Budget Multiplier for the Mixed Economy. *#**#* 11. Calculate the equilibrium output (Y) for the Mixed Economy. **#*#* 12. Calculate the change in Government Expenditures (AG) required to close the output gap (Y,-Y). 13. Calculate the change in autonomous Taxes (ATo) required to close the output gap (Y,-Y"). ****$# 14. The expenditures multiplier ****** for the Open Economy with Government Participation (Mixed Economy) is: a) indeterminate with b) indistinguishable from c) equal to d) larger than e) smaller than 14.2 the expenditures multiplier ****** for the Closed Economy with no Government Participation because: a. the Open Economy with Government has more sources of Leakage than Injections. b. the Closed Economy has more sources of Injections. C . international trade always shrinks domestic output. d. government deficits reduce domestic expenditures. e . closed-economy and open-economy multipliers are not comparable. f. leakages rise with income, but injections don't. 15. Calculate Total Injections at the equilibrium rate of output: ****** 16. Calculate Total Leakage at the equilibrium rate of output: ***#*#

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Reform Of The International Monetary System An Asian Perspective

Authors: Masahiro Kawai, Mario B Lamberte, Peter J Morgan

1st Edition

4431550348, 9784431550341

More Books

Students also viewed these Economics questions

Question

winge brose sin 435 cars 65ev

Answered: 1 week ago

Question

Values: What is important to me?

Answered: 1 week ago

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago