Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures...
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 3 billion, and the marginal propensity to consume on Troll Island is equal to 0.65 . What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5.
Homework Answers
Answer
Multiplier =1/(1-MPC)
MPC=marginal propensity to consume=0.65
Multiplier =1/(1-0.65)
=2.85714286
change in GDP = change in AE *Multiplier
=3*2.85714286
=8.57142858
=8.6 billion
the change in Troll Island's real GDP after the increase in AE is $8.6 billion
Add Answer to:
Troll Island is a small island nation that recently experienced
an autonomous change in aggregate expenditures...
help me find mpc The graph below shows the aggregate expenditures schedule for a nation that...
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...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP,...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
Consider the aggregate economy for the United States in 2007 and 2008, represented by the graph below. In which...
Consider the aggregate economy for the United States in 2007 and 2008, represented by the graph below. In which year is the unemployment rate higher? Price level (GDP deflator, 2009 = 100) LRAS2007 SRAS2008 LRAS2008 SRA $2007 99.2 A 97.3 AD2007 AD2008 14.83 14.84 14.88 15.20 Real GDP (trillions of 2009 dollars) The unemployment rate is higher in 2007. The unemployment rate is equal in the two years. The unemployment rate is higher in 2008. It cannot be determined from...
The net export function illustrates that:A) net exports are a positive function of domestic income....
The net export function illustrates that:A) net exports are a positive function of domestic income.B) net exports are independent of domestic income.C) net exports are a negative function of domestic income.D) imports are independent of domestic income.E) exports are independent of foreign income. Suppose the marginal propensity to import for country A is 0.4. Calculate the change in total value of imports of the country if national income increases by $100,000.A) $16,000B) $20,000C) $60,000D) $40,000E) $25,000 An MPI of 0.4 indicates that...
c. For each level of actual aggregate expenditure, calculate unplanned inventory investment. Instructions: Enter numerical values...
c. For each level of actual aggregate expenditure, calculate unplanned inventory investment. Instructions: Enter numerical values into the table. Enter whole numbers only. If the value is negative, you must enter a minus sign. d. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a numerical value rounded to two decimal places as necessary. e. For each level of actual aggregate expenditure, label the future output tendency as "increase," "decrease," or "same" based on what you...
How lire wuil the al change in inome be from a change in investmr marginal propensity...
How lire wuil the al change in inome be from a change in investmr marginal propensity to consume is 090 a. $15 b. $50 c S60 d. $75 e. $150 of $15 if the Terta W Profee When a small change in hank reserves is magnified iao a larpsr change call this phencenencn l. the investment eftect b. the expansionary effect. c. the MPS effect d. the money multiplser effect. 91. e. the spending maltiplier USE THE FOLLOWING TABLE TO...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment mechanism to operate is that O A private sector expenditures increase on their own, the policy will stabilize real GDP. OB. It will shorten what might otherwise be a long recession OC. will reduce the inflationary pressure on prices that would otherwise ocur. OD. It wil dose the output gap. Click to select your answer MacBook Air Assume...
Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor...
Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor force. included in the labor force, but counted as unemployed. treated the same way as discouraged workers. included in the labor force and counted as employed. Question 69 2.5 pts Which of the following would be officially classified as unemployed? O a school administrator who has been working as a substitute teacher one day per week while looking for a full-time job in administration...
QUESTION 10 Consider the monthly data, including the estimates for March 2020, and the information in...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
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...
10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in plannėd investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending...
Consider the aggregate economy for the United States in 2007 and 2008, represented by the graph below. In which year is the unemployment rate higher? Price level (GDP deflator, 2009 = 100) LRAS2007 SRAS2008 LRAS2008 SRA $2007 99.2 A 97.3 AD2007 AD2008 14.83 14.84 14.88 15.20 Real GDP (trillions of 2009 dollars) The unemployment rate is higher in 2007. The unemployment rate is equal in the two years. The unemployment rate is higher in 2008. It cannot be determined from...
c. For each level of actual aggregate expenditure, calculate unplanned inventory investment. Instructions: Enter numerical values into the table. Enter whole numbers only. If the value is negative, you must enter a minus sign. d. What is the equilibrium level of aggregate expenditure in this economy? Instructions: Enter a numerical value rounded to two decimal places as necessary. e. For each level of actual aggregate expenditure, label the future output tendency as "increase," "decrease," or "same" based on what you...
How lire wuil the al change in inome be from a change in investmr marginal propensity to consume is 090 a. $15 b. $50 c S60 d. $75 e. $150 of $15 if the Terta W Profee When a small change in hank reserves is magnified iao a larpsr change call this phencenencn l. the investment eftect b. the expansionary effect. c. the MPS effect d. the money multiplser effect. 91. e. the spending maltiplier USE THE FOLLOWING TABLE TO...
Consider an economy with an inflationary gap. The advantage of using a contractionary fiscal policy rather than allowing the economy's natural adjustment mechanism to operate is that O A private sector expenditures increase on their own, the policy will stabilize real GDP. OB. It will shorten what might otherwise be a long recession OC. will reduce the inflationary pressure on prices that would otherwise ocur. OD. It wil dose the output gap. Click to select your answer MacBook Air Assume...
Question 70 2.5 pts In the unemployment rate, part-time workers are: not included in the labor force. included in the labor force, but counted as unemployed. treated the same way as discouraged workers. included in the labor force and counted as employed. Question 69 2.5 pts Which of the following would be officially classified as unemployed? O a school administrator who has been working as a substitute teacher one day per week while looking for a full-time job in administration...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
Most questions answered within 3 hours.
-
Calculate the activity of a pure 5.8-μg sample of 3215P
(T12=1.23×106s).
asked 12 seconds from now -
What personality theory and test might a psychologist use for a
small group of elders between...
asked 2 minutes ago -
When five capacitors with equal capacitances are connected in
series, the equivalent capacitance of the combination...
asked 7 minutes ago -
1.
A corporation manufactures two variants of the same product:
Deluxe (D) and Classic (C). The...
asked 9 minutes ago -
A survey of undergraduate students in the School of Business at
Northern University revealed the following...
asked 20 minutes ago -
If a random variable Xhas the gamma distribution with α= 2and β
= 1,
(a) What...
asked 20 minutes ago -
What are some of the main differences in emails sent to
1) a classmate and 2)...
asked 24 minutes ago -
Networks have a ‘dual' property’. They provide information that
allows us to estimate our location. But...
asked 31 minutes ago -
Using Mathematica programming -- I need the program to run 8
times and get 8 different...
asked 39 minutes ago -
The survival to sexual maturity rates for genotypes A1A1, A1A2,
and A2A2 are 90%, 85%, &...
asked 34 minutes ago -
1-Imagine you're named an Economic Advisor to the
president of a very poor and backward country...
asked 38 minutes ago -
1.Explain the diffrence between equity finance and
debt finance with example?
By which one sales bonds...
asked 40 minutes ago