Complete the following table and answer the subsequent query on the idea of the resulting information brooks furniture express. B) imports will always exceed exports. D) exports and imports might be equal.
C) decrease consumption by $12. A) is the identical as tax collections at every level of GDP. C) varies inversely with the level of GDP. C) stay unchanged since spending on navy items is unproductive and usually wasteful. A) improve by $100 billion. C) improve by more than $100 billion.
D) Disposable income will decline by the amount of the tax and consumption at every level of GDP will decline by the quantity of the tax multiplied by the MPC. C) Disposable earnings will decline by the quantity of the tax and consumption at each stage of GDP may also decline by the quantity of the tax. A) reduce taxes by $28 billion. C) improve taxes by $21 billion.
C) Planned and actual funding are equivalent in any respect attainable levels of GDP. A) a decline in GDP and rising unemployment. C) an increase in consumption. D) have to be subtracted from consumption to discover out aggregate expenditures. Answer the following query on the premise of the following knowledge. The letters Y, C, S, and I are used to represent GDP, consumption, saving, and funding respectively.
The desk exhibits the consumption schedule for a hypothetical economy. All figures are in billions of dollars. Reduce real output by the identical amount as another tax increase. An unintended enhance in enterprise inventories. Shows deliberate purchase charges of products and companies at numerous worth ranges.
B) may be both above or beneath the equilibrium output. B) unemployment is about 3 p.c of the labor drive. D) APC will increase as income increases. B) adjustments by less in proportion terms than changes in real GDP. Companies should be prepared to use new stock extra typically, in addition to decrease their prices to more to pay for the brand new inventory. In this case it’ll doubtless have very negative consequences for the buyer as nicely.