1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bixtya [17]
3 years ago
6

Suppose that the behavior of households and firms in an economy is determined by the following equations C=60+0.9Yd, II = 34, G

= 25, T = 10+ 0.1Y, TR=80, X=30, IM=20 + 0.05Y
a. Calculate an expression for aggregate expenditure as a function of income (please enter your answer in the form: AE = a + bY). Note that in an open economy: AE=C+II + G + X - IM and pay attention to the parentheses!!
b. Calculate the equilibrium level of output (please just enter the numeric value of output).
c. Please calculate the level of taxes in the economy (please just enter the numeric value of taxes).
d. Is the government running a budget surplus or a budget deficit? Surplus . Please calculate its size.
e. Is the economy running a trade surplus or a trade deficit? Surplus . Please calculate its size.
Business
1 answer:
Airida [17]3 years ago
3 0

Answer:

Please find the detailed answer as follows:

Explanation:

We use

a) AD = C + I + G + NX

AD = 60 + 0.9(Y – 10 – 0.1Y) + 34 + 25 + 30 – 20 – 0.05Y

AD = 120 + 0.76Y

b) Y* = 500

c) T = 60

d) budget surplus (T - G) = (60 - 25) = 35

e) Trade deficit = X - M = 30 - 45 = -15.

You might be interested in
We say that the economy as a whole is in macroeconomic equilibrium if:
Serga [27]

For the economy as a​ whole, macroeconomic equilibrium if the total​ spending, or aggregate​ expenditure, equals total​ production, or​ GDP: Aggregate Expenditure​ = GDP.

Macroeconomic equilibrium happens when the quantity of real GDP demanded equals the amount of actual GDP provided at the point of intersection of the ad curve and the AS curve. If the amount of actual GDP provided exceeds the amount demanded, inventories pile up in order that corporations will reduce production and expenses.

Macroeconomic equilibrium is a situation within the economy in which the amount of combination called for equals the quantity of aggregate supply. If there are changes in both aggregate call for or mixture deliver, you can additionally see a trade-in rate, unemployment, and inflation.

The amount of output furnished may be extra than the mixture demand. charges will begin to fall to dispose of the surplus output. As fees fall, the amount of combination demand will increase and the economy returns to equilibrium.

Learn more about macroeconomic equilibrium here: brainly.com/question/1971734

#SPJ4

5 0
2 years ago
The American economy consists of a complex combination of organizations and variables, such as countless companies differing in
Jlenok [28]

Answer:

The correct answer is The Theory of complexity.

Explanation:

The Theory of Complexity and Organizations, also called complexity strategy or adaptive complex organization, is the use of complexity theory in the field of strategic management and organizational studies.

The complexity theory has been used in the fields of strategic management and organizational studies. Areas of application include an understanding of how organizations or companies adapt to their environment and how they deal with situations of uncertainty. The theory treats organizations and companies as collections of strategies and structures. The structure is complex, because they are dynamic networks of interactions, and their relationships are not the result of the aggregation of individual static entities. They are adaptive; Because individual and collective behaviors mutate and organize themselves in response to the initial changes of micro events or the total set of events.

7 0
3 years ago
Uber’s strategy has been to break these regulations, establishing its service first, and then fighting attempts by regulators to
aleksley [76]

Answer: No it is not.

Explanation:

Uber by first establishing itself and then fighting regulators leaves itself open to attack around the world. This is because the Regulators have the power to keep adjusting the laws that govern Uber if they feel that Uber has an unfair advantage or if it's existence is detrimental to the society. Uber has been accused many times of various infractions such as Tax Evasions and being a conduit through which crime can be committed because it did not conduct proper background checks.

Going back to the issue of taxes, if the regulators feel that Uber may be avoiding taxes, they could impose laws that either cause an increase in Uber prices or remove them from a location which can have a native influence on Uber's bottomline.

This approach is not good because regulators do not like being fought and will try to ascert dominance. It is simply not viable and this has been proven with Uber's many suspensions around the world.

8 0
3 years ago
Suppose Asarta Inc. is polluting yucko and they have been tasked with cleaning up some of their waste. The company decides to cl
uranmaximum [27]

Answer: The answer is No, because the MB > MC

Explanation:

They are not cleaning up enough because the MB>MC. Therefore, all other options which cut across - Yes, because the MC > MB,

No, because the MB > MC,

Yes, because the MB > MC and

No, because the MC > MB are wrong.

5 0
3 years ago
Your company will need a business plan in order to do what?
vekshin1
In order to run your buissnes 
4 0
3 years ago
Other questions:
  • A common feature of skiing is waiting in lift lines. Does the existence of lift lines mean that the price is not working to allo
    9·1 answer
  • Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $140,000 and used for
    10·1 answer
  • Hazelwood Company had beginning inventory of $54,000. During the period the company purchased $109,800 of merchandise. At the en
    8·1 answer
  • Melanie Gollick, nursing floor manager for Scripps Memorial Hospital La Jolla, says, "It’s the personality and being able to mes
    14·1 answer
  • If the future value of an ordinary, six-year annuity is $8,500 and interest rates are 9.5 percent, what’s the future value of th
    6·1 answer
  • Which financial statement shows a company's profits or losses over a period of time?
    10·1 answer
  • In regard to Project Work, which activity refers to reviewing the progress and capturing project performance data with reference
    5·1 answer
  • Choose the best answer to fill in the blanks. When writing for business, it is important to be _______ and make sure that you al
    11·1 answer
  • The relationship between the elasticity of product demand and the elasticity of demand for labor employed in its production is s
    8·1 answer
  • Please choose A, B, C, or D
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!