Answer the Following Questions Using the Aggregate Expenditures Model of the Economy

question 44

Essay

Answer the following questions using the aggregate expenditures model of the economy described below.
C = 80 + .6Y_d
T = 40 + .2Y
I_a = 28
G_a = 64
X_a = 76
M = .18Y
(a)What are the marginal propensity to consume,the marginal tax rate,and the marginal propensity to import?
(b)What is the saving function? What is the marginal propensity to save?
(c)What is the aggregate expenditure function? What is autonomous expenditure? What is the marginal propensity to withdraw?
(d)What is the equilibrium level of real GDP?
(e)What is the size of the multiplier?
(f)Suppose the full employment level of real GDP is $340.Does a recessionary gap or an inflationary gap exist? How can the government eliminate the gap by altering government expenditures?

Recognize the Spearman rank-order correlation as a measure for ordinal data.

Distinguish between correlational statistics and correlational research.

Understand how sample size affects the interpretation of correlation analyses.

Understand the concept of a non-directional hypothesis in correlation analyses.

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Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Social Mores

Strict norms that control moral and ethical behavior in a culture.

Uniformly

In a consistent or identical manner across a given set of conditions or cases.

Significant

Having a particular meaning, importance, or consequence, often in a specific context.