Draw a planned aggregate expenditure curve for an economy where autonomous expenditure is $200 billion and the marginal propensity to consume is equal to 0.50. Plot values for 'Actual Aggregate Expenditure' of $100, $200, $300, $400, $500, and $600. Instructions: Use the graphing tool to draw the planned aggregate expenditure curve by plotting points at each level of output (Y) starting with zero and ending with 500. Planned Aggregate Expenditure (PAE, billions of dollars) PAE = Y 500 450 400 350 300 250 200 150 100 50 200 300 400 500 Actual Aggregate Expenditure (Y, billions of dollars) 100 Tools PAE
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- For the relationship graphed below: Household Spending = C ($/month) a Question 7 Homework Unanswered b с d 3,200 2,300 1,400 500 0 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. 1,000 2,000 3,000 Total Income = Y($/month) Spending Function total income is the independent variable and household spending is the dependent variable. total income is the dependent variable and household spending is the independent variable. total income is unrelated to household spending. total income is an exogenous variable, or shift factor.In the below table, C is consumption expenditure, Iis investment, G is government expenditure, and NX is the net exports. All entries are in million dollars. (SHOW THE STEPS OF CALCULATIONS) a) What is the equilibrium level of real GDP? b) What is the slope of the aggregate expenditure function? c) What is the unplanned inventory change when GDP is equal to $2200 million? d) How much is the level of savings when income is $2300 million?A tax on gasoline is proposed in order to raise money for the pollution-control activities of several public agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used by motorists (this is strictly an illustrative number). Does this mean that we can anticipate $1,030,000 in revenues from this tax? Explain and use a graph to answer this question.
- Real-Time Data Analysis Exercise The following table contains the most recent household expenditure data from FRED*. *Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis. Using the data from FRED, compute the value for personal consumption expenditures for the first quarter of 2021. (Enter your response rounded to one decimal place.) Title Value Personal Consumption Expenditures $ 15,069.2 billion $1,938.577 billion Personal Consumption Expenditures: Durable Goods Personal Consumption Expenditures: Nondurable Goods $3,269.759 billion $1,049.521 billion $9,860.896 billion Private Residential Fixed Investment Personal Consumption Expenditures: Services According to these data, the share of total household expenditures devoted to goods is 34.6 percent. (Enter your response rounded to one decimal place.) From this result it may be concluded that, all else constant, any given reduction in household spending will be felt more significantly in…Consider the data presented in the table: Actual aggregate expenditure or output Consumption Planned (Y) (C) (billions (billions of $) of $) 500 300 600 350 700 400 800 450 900 500 Unplanned Government Net investment spending exports (inventory (NX) change) investment (G) (billions (billions (billions (billions of $) of $) of $) of $) 100 -100 -50 S ol C 150 150 C 150 S 150 C 150 C 100 100 C 100 C 100 C Based on the assumptions of the aggregate expenditure model, fill in the columns for planned investment, government spending, and net exports. Instructions: Enter the values into the table above. 50 50 € 50 C 50 S 50 S a. For each level of actual aggregate expenditure, calculate unplanned inventory investment. correct. Instructions: Enter the values into the table above. If the value is negative, then be sure to enter a minus sign. b. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a number rounded to the nearest whole number. Answer is…Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX= - 2000 A.) Investment is $9,800 B.) Investment is 12,000 C.) Investment is 3600 D.) Investment is 1,200
- Determine which expenditure(s) are included in the 2023 Gross Domestic Product (GDP) of Harrisonville. Correct Answer(s) Drag appropriate answer(s) here $500 million in road construction by state governments of Harrisonville Press Space to open $900 million in pharmaceutical products exported from Harrisonville to Murrayville Press Space to open a home built in 1974 valued at $ 750,000 Press Space to open businesses purchase $500 million on equipment and materials to produce future output Press Space to open $80 million in Social Security payments from the government to individuals Press Space to open $250 million expenditure for coffee beans from the central highlands of Peru Press Space to open $300 million in food and clothing purchases.Calculate the four components of aggregate expenditure and GDP for the following economy using data from the table below.Instructions: Enter your responses as whole numbers. If you are entering any negative numbers, be sure to include a negative (-) sign in front of those numbers. GDP Consumption expenditures $600 Exports $75 Government purchases of goods and services $200 Construction of new homes and apartments $100 Sales of existing homes and apartments $200 Imports $100 Beginning-of-year inventory stocks $100 End-of-year inventory stocks $150 Business fixed investment $100 Government payments to retirees $100 Household purchases of durable goods $150 Consumption expenditures: $ Investment expenditures: $ Government Purchases: $ Net Exports: $ GDP: $The accompanying table shows a portion of quarterly data for real personal consumption (Consumption in $) and real personal disposable income (Income in $) for the years 2000-2019. Date Q1,2000 Q2, 2000 A Q4,2019 Consumption 8520.71 8603.01 ⠀ 13411.94 Income 9338.68 9441.95 1 15100.13 pictureClick here for the Excel Data File a. Construct a scatterplot of Consumption against Income. Given the scatterplot, which statement best describes the relationship between Consumption and Income? O Consumption and Income have a positive relationship. O Consumption and Income have a negative relationship. O Consumption and Income have no relationship. O Consumption and Income have a U-shaped (nonlinear) relationship.
- Now use the table to find aggregate expenditure and the unplanned change in Inventories, Real GDP Consumption (C) $9,900 $10,800 ( $11,000 $12,000 Planned Investment () $1,100 $1,100 Government Purchases (G) $1,200 1,200 Net Exports (NX) -$275 - $275 Planned Aggregate Expenditure (AE) Unplanned Change in InventoriesGraph and label as either direct or indirect the relationships you would expect to find between (a) the number of inches of rainfal per month and the sale of umbrellas, (b) the amount of tuition and the level of enrollment at a university, and (c) the popularity of an entertainer and the price of her concert tickets.Potential GDP| ' 45° C+1+(X-IM) 4,800 B 3,200 3,000 4,000 5,000 2. Use the graph above to answer the following questions: a. Calculate the MPC: b. What is the equilibrium value of GDP?_ Real Expenditure (billions of dollars per year)