Homework Answers
Answer : Option B:$45000
Let Y is equilibrium income level
Y=C+I+G
C=A+MPC*(Y-T) =900+0.9*(Y-1000)=0.9*Y
Y=0.9Y+2500+2500
Y=$50000
So equilibrium consumption C=0.9*Y=0.9*50000=$45000
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expenditures model:
Instructions: Enter your answer as a whole
number.
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GDP?
b. If real GDP in an economy is currently $230, will the
economy’s real GDP rise, fall, or stay the same?
(Click to select) Real GDP will
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GDP stay the same.
c. Suppose that full-employment...
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help me find mpc
The graph below shows the aggregate expenditures schedule for a nation that just experienced an increase in gross investment (0) government purchases (G), and/or net exports (NX). Aggregate Expenditures Schedule Aggregate Expenditures (dollars) 32,000 31,000 30,000 29.000 28,000 27,000 26,000 25,000 24,000 23.000 AE Y AE 32,000 31,000 30,000 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 20,000 24,000 2,000 RBS 20,000 32,000 Real GDP (dollars) 26,000 28,000 20,000 21 Using the information in the...
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In the aggregate expenditures model, the equilibrium GDP is 2 Multiple Choice 03:53:37 always less than the full-employment GDP level. not necessarily equal to the full-employment GDP. assumed to be equal to the potential GDP level. always above the potential GDP level.
Answer the following questions, which relate to the aggregate
expenditures model:
Instructions: Enter your answer as a whole
number.
a. Given the following: Ca = $120,
Ig = $60, Xn = − $10, and
G= $30, what is the economy’s equilibrium
GDP?
b. If real GDP in an economy is currently $230, will the
economy’s real GDP rise, fall, or stay the same?
(Click to select) Real GDP will
rise. Real GDP will fall. Real
GDP stay the same.
c. Suppose that full-employment...
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