Professional Documents
Culture Documents
3 1 PDF
3 1 PDF
3 1 PDF
decision theory
MACROECONOMIC
EQUILIBRIUM
Tasks for determining aggregate demand and aggregate
supply
Task 1
Problem statement: household consumption Expenditure
is 960 USD Government expenditure (GNP) is 270 USD
Import is 70, export – 75 USD Investment costs to expand
the business – 246 USD, depreciation is 140 USD
Determine the total demand.
The technology of solving the problem: the calculation of total
demand is carried out according to the formula:
AD = Consumer spending + Gross business investment
spending + government procurement of goods and services +
Net exports of goods and services = C + Inv + G + Xn
Task 2
Consumption is given by the function: C = 1000 + 0,8YV (YV –
disposable national income), investments are equal to 2000 USD,
net export-300 USD Determine the aggregate demand in the
economy, if a national income of 10 000 USD is created, and taxes
are equal to government spending and amount to 1200 USD
The technology of solving the problem: the Total demand is determined
by the formula: AD = Consumer spending + Gross investment costs of
business + public procurement of goods and services + Net exports of
goods and services = C + Inv + G + Xn.
In order to determine consumption, it is first necessary to determine
disposable national income. To do this, the national income created in the
economy, exempt from taxes:………………...
Substituting the values in the formula AD, we obtain:
AD = …………………..
Task 3
Consumption is given by the function: C = 2000 + 0.75YV (YV
– disposable national income), investments are equal to 5200
USD, net exports-700 USD, public procurement of goods and
services is 0.15Y Determine the total demand in the economy,
if the national income is created in the amount of 30 000 USD,
and taxes are 7500 USD
Technology to solve the problem: First determine the disposable
national income, national income created in the economy is clear
from the taxes: ……………….. As a result, the consumption function is
written as a formula: ………………………….. Hence, consumption equals
………………..Then you can define public expenditure on GNP:……………….
Substitute the values in the formula AD: AD = Consumer spending
+ Gross investment expenditure of business + public procurement of
goods and services + Net exports of goods and services = C + Inv +
G + Xn = ……………………………
Task 4
Consumption is given by the function: C = 0.85YV (YV –
disposable national income), investments are equal to 3400
USD, net exports – 400 USD, public procurement of goods
and services is 0.1Y. Determine the total demand in the
economy, if a national income of 20 000 USD is created, and
taxes are equal to 0.2Y.
The technology of solving the problem: first, we determine the
available national income. To do this, the national income created
in the economy, are exempt from taxes: ……………………. As a result,
consumption will be: C = ……………………………….then you can
determine the public expenditure on GNP:………………………….
Substitute the values in the formula AD: AD = Consumer
spending + Gross investment expenditure of business + public
procurement of goods and services + Net exports of goods and
services = C + Inv + G + Xn = ………………………………….
Task 5
Consumption is given by the function: C = 13 500 + 0,7YV (YV –
disposable national income), investments are 6000 USD, net exports –
1000 USD, public procurement of goods and services is 0,2Y. Created a
national income of 100 000 USD, taxes are 20 000 USD Determine the
total demand and how it will change if consumers prefer to consume
2000 USD less at each level of income.
The technology of solving the problem: first, we determine the available
national income. To do this, the national income created in the economy, are
exempt from taxes: ………………………….. As a result, the consumption function is
written as a formula: C = …………………………... Hence, consumption equals
……………….. USD you can Then determine public expenditure on
GNP:……………………….
Substituting the values in the formula AD, we find the initial aggregate
demand: AD = Consumer spending + Gross investment costs of business +
public procurement of goods and services + Net exports of goods and services
= C + Inv + G + Xn = ……………………………….USD
Changes in consumption will also change aggregate demand. Consumer
spending is now equal to: C = ……………………………..USD and aggregate demand:
AD = …….............USD that is, the aggregate demand will decrease by
……………. USD
Answer: will be reduced by …………………….. USD
Task 6
Consumption function is given by: C = 2000 + 0,8 Уv (Уv – disposable
national income), investment is equal to 3200 USD, net exports – USD
500, government purchases of goods and services to be 0.1Y. Created a
national income of USD 50,000 and taxes equal to 0.25Y. Determine the
aggregate demand and how it will change if state expenditures will
increase to 0.15Y.