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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_1

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
Macroeconomics_2

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
Macroeconomics_3

3MACROECONOMICS
MPC=1 ( MPS + MRT + MPM )
¿ 1 ( 0.3+ 0.05+0.04 )
¿ 10.39
¿ 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 ×46082770140.1 )
¿ , 260656=a+0.61 ( 437785.770140.1 )
¿ , 260656=a+0.61 ×367645.6
¿ , 260656=a+224263.8
¿ , a=260656224263.8
¿ , a=36392.2
Therefore, the computed value of autonomous consumption is 36392.2 million dollar
Macroeconomics_4

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