Question
please answer 7,8,9,10. thank you so much!!:))

SECTION In the simple Keynesian model with an MPC equal Keynesian model with an MPC equal to 0.80, a S50 billion increase in
0 0
Add a comment Improve this question Transcribed image text
Answer #1

MPC = 0.80 SI = 50 Rise un incomez & billion Ay= L X I I-MPC мар ч -0. 02 = 1250 & billion rise (c) is correct. AY = 2000 & A

Add a comment
Know the answer?
Add Answer to:
please answer 7,8,9,10. thank you so much!!:)) SECTION In the simple Keynesian model with an MPC...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Assume the government cuts taxes by $200 billion. If the MPC is 0.8, what is the maximum potential impact on real GDP according to the simple Keynesian model?

    Assume the government cuts taxes by $200 billion. If the MPC is 0.8, what is the maximum potential impact on real GDP according to the simple Keynesian model? Real GDP increases by $1,000 billion Real GDP Increases by $800 billion Real GDP decreases by 51.000 billion Real GDP decreases by 5000 buttonIn Keynesian theory, if the marginal propensity to consume is 0.90 and government spending is increased by $50 billion, then real income (GDP) will maximum of billion by a decrease: $500 decrease $50 Increase: $500  Increase: $50

  • 15. According to the Keynesian-cross analysis, if MPC stands for marginal propensity to consume, then a...

    15. According to the Keynesian-cross analysis, if MPC stands for marginal propensity to consume, then a rise in taxes of ΔT will: A) decrease equilibrium income by ΔT. B) decrease equilibrium income by ΔT/(1 – MPC). C) decrease equilibrium income by (ΔT)(MPC)/(1 – MPC). D) not affect equilibrium income at all. 16. Assume that a country’s MPS is equal to 0.4 and government expenditure is lowered by $20 billion, what is the effect on the country’s Y? A) It will...

  • In the Keynesian-cross model, if the MPC equals 0.75 then a $2 billion increase in government...

    In the Keynesian-cross model, if the MPC equals 0.75 then a $2 billion increase in government spending increases the equilibrium level of income by __________. A) $1 billion. B) $3 billion. C) $4 billion. D) $2 billion.

  • please show solutions also. Thanks Question 4 In a simple Keynesian model, assume that the marginal...

    please show solutions also. Thanks Question 4 In a simple Keynesian model, assume that the marginal propensity to consume (MPC) is 0.5. a) Find the government purchases multiplier b) Find the tax multiplier c) If the government wants to increase equilibrium real GDP by $ 500 billion, how much should the government increase spending? d) For the same purpose, how much should the government decrease taxes? According to Ricardian equivalence, do you think the government estimate is correct (should the...

  • NAME SECTION THE BASIC KEYNESIAN MODEL Use the information in the table below to fill in...

    NAME SECTION THE BASIC KEYNESIAN MODEL Use the information in the table below to fill in blanks 1-10. Disposable Income Consumption Spending $100 $200 $300 $400 $500 S600 $700 $100 $180 $260 $340 420 S500 S580 S660 1. Autonomous consumption is equal to S 2. The marginal propensity to consume is equal to 3. A S100 increase in disposable income (Yo) leads to aln) S 4. The marginal propensity to save is equal to increase in _ consumption spending (C)....

  • Question 14 6 pts Assume the government cuts taxes by $250 billion. If the MPC is...

    Question 14 6 pts Assume the government cuts taxes by $250 billion. If the MPC is 0.8, what is the maximum potential impact on real GDP according to the simple Keynesian model? Real GDP decreases by $1,000 billion Real GDP decreases by $1.250 billion Real GDP increases by $1,000 billion Real GDP increases by $1.250 billion D Question 15 6 pts in Keynesian theory, if the marginal propensity to consume is 0.90 and government spending is increased by $40 billion,...

  • Consider the following numerical example of the simple Keynesian model: C = 420 +.6YD IP =...

    Consider the following numerical example of the simple Keynesian model: C = 420 +.6YD IP = 90 G= 100 T= 100 NX = 50 where YD = disposable income (Income minus net taxes) T = net taxes i.e., taxes minus transfers) Assume that all of the above variables are measured in billions of dollars per year, and refer to real variables (i.e. adjusted for any inflation that might be happening). For example, the equation for consumption tells us that real...

  • 4. In the Keynesian-cross model with an MPC > 0, if government purchases increase by 250,...

    4. In the Keynesian-cross model with an MPC > 0, if government purchases increase by 250, then the equilibrium level of income: A) increases by 250. B) increases by more than 250. C) decreases by 250. D) increases but by less than 250.

  • For a real Keynesian model of a mixed economy with a marginal propensity to consume equal...

    For a real Keynesian model of a mixed economy with a marginal propensity to consume equal to .8 and autonomous consumption equals 600 billion, planned investment equals 100 billion, government spending equals 300 billion, and taxes equal 300 billion: a. Calculate the equilibrium level of Ye or real output. b. Draw a diagram that illustrates the equilibrium condition for the model, the equilibrium level of output, and the level of autonomous spending. Be sure to carefully label your diagram, including...

  • Use the data below to answer the question. C - $600 billion +0.9(YD I $850 billion...

    Use the data below to answer the question. C - $600 billion +0.9(YD I $850 billion G=$500 billion T=$500 billion In the simple Keynesian model. if government spending increases from $500 billion to $600 billion, equilibrium income will O Increase by $100 billion, O only increase if taxes also increase from $500 billion to S600 billion Increase by $1,000 billion O only increase if taxes decrease by the same amount

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT