Which component of GDP will increase if disposable income increases

Q: The table below provides Income and consumption Data in billions of dollars. Answer question below…

A: Here, the given table shows the consumption level at different income levels in an economy.

Q: Consider how each of the following events is likely to affect real GDP. Do you think the change in…

A: The countries around the world work upon the basis of the production of the goods, services, assets,…

Q: In a two-sector economy, Aggregate Expenditure (AE) equals

A: Since you have asked multiple questions, we will answer the first question for you. If you want any…

Q: If the government decreases taxes, disposable income does not change. falls. increases.…

A: personal disposable income is the part of personal income left after payment of direct taxes, it is…

Q: Describe briefly how GDP returns to its potential level.

A: GDP is at potential level in the long run ie at the intersection of aggregate demand, aggregate…

Q: Explain how each of the following will affect the consumption and saving schedules (as they relate…

A: HI Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: The equilibrium position for an economy is represented by the following equations: Y = C + I, + G…

A:

Q: Please solve using a national income accounting: An increase in disposable income will increase in…

A: National income means the total factor income earned by country's national income during an…

Q: 1. Consider how each of the following events is likely to affect real GDP. Do you think the change…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Consider how each of the following events is likely to affect real GDP. Do you think the change in…

A: a) If business and firms experience falling demand and thereby lay off workers, then it implies that…

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: According to the expenditure approach of calculating national income,  Y= C+I+G+NX C is the domestic…

Q: Why is investment an important component in a country's output? what theory supports investment in…

A: To spur economic growth, a country must acquire or mobilise funds in order to invest in the…

Q: consider the following hypothetical economy. Consumption makes of 60% of national income,…

A: Given consumption is 60% of national income implies that C=0.6Y, where C is consumption and Y is…

Q: If there is an increase in the personal income tax rate, and people do not receive a pay increase,…

A: The tax is a unilateral payment made by the public towards the government for various purposes such…

Q: Using a suitable graph, what is the effect on national income if people increase autonomous saving?

A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…

Q: Given the following: consumption = 400, investment = 100, government expenditure = 50 and net export…

A: GDP = Consumption + Investment + Government expenditure + Net export

Q: Fluctuation of savings and investment rates impact on GDP of any macroeconomics. Comment with the…

A: GDP or the gross domestic product is the value of all the final goods and services which are newly…

Q: You are given the following information about an economy. C=20+0.8(Y-T) 1=100 G=520 T=0.25Y and…

A: Equilibrium GDP is denoted to be as that level of the output whose certain level of the production…

Q: In Hong Kong as in much of the world, National Income and GDP data are revised from time to time as…

A: Answer: Part (a). If consumer bought $8 billion more furniture than previously thought then the…

Q: What happens to disposable personal income if tax rates increased? How could nominal GDP increase…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Explain how each of the following will affect the consumption and saving schedules (as they relate…

A: Consumption Schedule  The consumption schedule implies the relationship between current disposable…

Q: If disposable income rises, then GDP rises as well. * True False

A: Macroeconomics is an area of economics that is used to understand how efficiently a policymaker can…

Q: Explain difference between GDP and GNP. Support your answer with simple examples from Oman economy.

A: GDP - Gross domestic product. GNP - Gross national product. Both are methods of national income…

Q: In Australia, in the year of 2014 the value of MPS was 0.61  What would have been the value of MPC…

A: The data presented in the above question is:- In the year of 2014, the MPS in Australia is 0.61  The…

Q: "In a private closed economy, when aggregate expenditures exceed National Income:" O National Income…

A: Explanation: Aggregate expenditure of an economy is the amount spent by households, firms, and the…

Q: In the country of Borealis, the minimum amount of consumption spending that will occur is $300 -…

A: C=300+0.75Y I=100 G=100 X=M=T=0

Q: A person’s disposable income decreases, and his personal income remains unchanged. This is because…

A: Disposable income of the consumer is that income which consumer have recieve after deduction taxes…

Q: Calculate the value of final Consumption Expenditure when the value of national income is $5000 ,…

A: # The value of the final consumption expenditure is given by the equation:- C = Autonomous…

Q: An economy has the following data: real GDP $5,166 billion taxes collected by the government $499…

A: GDP: It refers to the goods and services which can be produced in an economy during a particular…

Q: consumption function of a hypothetical Economy is given as:- C = 100 + 0.6Y Calculate the value of…

A: Marginal Propensity to consume alludes to the rate change in utilization for each one dollar of…

Q: List three real life situations that shows a flaw with using GDP as the only indicator of the…

A: GDP (Gross Domestic Product): It refers to the total market value of all produced final goods and…

Q: if the multplier in an economy is 2, a $10 billion increase in net exports will

A: The Multiplier Effect :  An initial fiscal injection in the economy gives us a comparatively higher…

Q: Which components of aggregate expenditure do not directly depend on current income?

A: Aggregate expenditure refers to the current value of all the final goods and services produced in an…

Q: The aggregate expenditure for a simple economy in 2016 was $9 million. The table below shows…

A: Given: Aggregate expenditure in 2016=$9 million

Q: Jane spends $1,200 on a used computer. How will this calculation effect GDP?     A.) Consumption…

A: Gross domestic product (GDP) measures the market value of final goods and services produced during a…

Q: Consumption Function) How would an increase in each of the following affect the consumption…

A: The consumption function refers to the standard equation of consumption that indicates the…

Q: C = 180 + 0.70YD |= 150 G = 190 T= 120 a.) Equilibrium GDP (Y) = (Round your response to two decimal…

A: The total amount of goods and services that produced in an economy in a given period of time is…

Q: Would a temporary investment tax credit for businesses or a temporary income tax cut for individuals…

A: Temporary income tax cut would influence GDP greatly.

Q: Which of the following will not cause an increase in equilibrium GDP? a) an increase in government…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: Consider an economy in which the only taxes collected by the government are lump-sum (the tax bills…

A: Tax rate will influence the disposable income of households.

Q: what ia aggregate spending

A: When studying economics, there are various economic terms that an individual needs to know and…

Q: planned and unplanned investment unlikely to both increase over the same period of time?

A: The savings intended to be made by all the households in the economy during the beginning of a…

Q: If the United States introduces universal child care, what will likely happen to GDP? Explain fully…

A: Universal child care is the provision of child care facilities like health care, education,…