Given the consumption, Investment, and Government spending, assuming this country operates under a closed economy and not
Question:
Given the consumption, Investment, and Government spending, assuming this country operates under a closed economy and not dealing with the rest of the world as in the table below
Y | C | G | I |
0 | 20 | 15 | 25 |
100 | 100 | ||
200 | |||
300 | |||
400 | |||
500 | |||
600 | |||
700 | |||
800 | |||
900 | |||
1000 |
Instructions:
1. find the equilibrium consumption.
2. Show the range of income at which saving is negative and the range of income at which saving is positive.
3. Write consumption function, saving function and aggregate expenditure function
4. find the equilibrium expenditure.
5. Show the range of income at which unplanned inventory is negative and the range of income at which unplanned inventory is positive.
6. Show new equilibrium expenditure if autonomous investment increases by $20 at every price level.
QUESTION 4
Given the following data for an open economy at current market prices for the year 2017 measured in billion dollars.
Net investment spending | 800 |
Government Expenditure | 700 |
Consumption expenditure | 1500 |
Depreciation | 200 |
Net export | 100 |
Export | 300 |
GDP deflator 2016 (unit free) | 140 |
GDP deflator 2017 (unit free) | 150 |
1. What is the value of the gross investment in 2017?
2. What is the value of the gross domestic product GDP in 2017?
3. What is the value of nominal GDP in 2017?
4. What is the value of RGDP in 2017?
5. What is the value of imports in 2017?
6. What is the value of the inflation rate in 2017?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill