Macroeconomics
Added on 2023-03-17
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Running head: MACROECONOMICS
Macroeconomics
Name of the student
Name of the university
Course ID
Macroeconomics
Name of the student
Name of the university
Course ID
![Macroeconomics_1](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fsq%2F52c8371d251a49d8be3a459f8b89a93e.jpg&w=3840&q=10)
1MACROECONOMICS
Table of Contents
Answer a..........................................................................................................................................2
Answer b..........................................................................................................................................2
Answer c..........................................................................................................................................4
Answer d..........................................................................................................................................4
Answer e..........................................................................................................................................5
Answer f...........................................................................................................................................6
Answer g..........................................................................................................................................7
Answer h..........................................................................................................................................8
Answer i.........................................................................................................................................10
Answer j.........................................................................................................................................11
References list................................................................................................................................13
Table of Contents
Answer a..........................................................................................................................................2
Answer b..........................................................................................................................................2
Answer c..........................................................................................................................................4
Answer d..........................................................................................................................................4
Answer e..........................................................................................................................................5
Answer f...........................................................................................................................................6
Answer g..........................................................................................................................................7
Answer h..........................................................................................................................................8
Answer i.........................................................................................................................................10
Answer j.........................................................................................................................................11
References list................................................................................................................................13
![Macroeconomics_2](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fjb%2F37ea721597204471866cb90fd2838cbc.jpg&w=3840&q=10)
2MACROECONOMICS
Answer a
Gross Domestic Product=Consumption+ Investment +Government expenditure+ Net export =Consumption+ Inve
From Australian Bureau of Statistics, information on the following four components are obtained
as
Consumption expenditure: $260752 million
Investment expenditure: $109478 million
Changes in inventory = $1983 million
Government expenditure: $84696 million (abs.gov.au 2018)
Export: $100820 million
Import: $99614 million
ActualGDP=$ 260752+ $ 1094 78+ $ 1983+ $ 84696+ ( $ 100820−$ 99614 )
¿ $ 260752+ $ 109478+ $ 1983+ $ 84696+ $ 1206
¿ $ 458115 millon
Answer b
Consumption(C )=a+ b Y d
a: autonomous consumption
b: marginal propensity to consume (MPC).
Given MPS = 0.3, marginal rate of tax is 0.05 and nx(m) is 0.04, the MPC can be compute as
Answer a
Gross Domestic Product=Consumption+ Investment +Government expenditure+ Net export =Consumption+ Inve
From Australian Bureau of Statistics, information on the following four components are obtained
as
Consumption expenditure: $260752 million
Investment expenditure: $109478 million
Changes in inventory = $1983 million
Government expenditure: $84696 million (abs.gov.au 2018)
Export: $100820 million
Import: $99614 million
ActualGDP=$ 260752+ $ 1094 78+ $ 1983+ $ 84696+ ( $ 100820−$ 99614 )
¿ $ 260752+ $ 109478+ $ 1983+ $ 84696+ $ 1206
¿ $ 458115 millon
Answer b
Consumption(C )=a+ b Y d
a: autonomous consumption
b: marginal propensity to consume (MPC).
Given MPS = 0.3, marginal rate of tax is 0.05 and nx(m) is 0.04, the MPC can be compute as
![Macroeconomics_3](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fvg%2F9d582cb585cb4f0c9a86421481bd7a94.jpg&w=3840&q=10)
3MACROECONOMICS
MPC=1− ( MPS + MRT + MPM )
¿ 1− ( 0.3+ 0.05+0.04 )
¿ 1−0.39
¿ 0.61
Yd : Disposable income is income left after payment of tax. Given marginal tax rate 0.05, the
expression for disposable income is given as
Y d =Y −0.05Y −T
¿ 0.95 Y −70140.1
C=a+ 0.61(0.95 Y −70140.1)
¿ , 260656=a+0.61 ( 0.95 ×460827−70140.1 )
¿ , 260656=a+0.61 ( 437785.7−70140.1 )
¿ , 260656=a+0.61 ×367645.6
¿ , 260656=a+224263.8
¿ , a=260656−224263.8
¿ , a=36392.2
Therefore, the computed value of autonomous consumption is 36392.2 million dollar
MPC=1− ( MPS + MRT + MPM )
¿ 1− ( 0.3+ 0.05+0.04 )
¿ 1−0.39
¿ 0.61
Yd : Disposable income is income left after payment of tax. Given marginal tax rate 0.05, the
expression for disposable income is given as
Y d =Y −0.05Y −T
¿ 0.95 Y −70140.1
C=a+ 0.61(0.95 Y −70140.1)
¿ , 260656=a+0.61 ( 0.95 ×460827−70140.1 )
¿ , 260656=a+0.61 ( 437785.7−70140.1 )
¿ , 260656=a+0.61 ×367645.6
¿ , 260656=a+224263.8
¿ , a=260656−224263.8
¿ , a=36392.2
Therefore, the computed value of autonomous consumption is 36392.2 million dollar
![Macroeconomics_4](/_next/image/?url=https%3A%2F%2Fdesklib.com%2Fmedia%2Fimages%2Fqb%2F7ead41a1c53c4e1d8e7ffe304aabdedb.jpg&w=3840&q=10)
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