Question

I just need answers for 1, 2, 4, 6, 10, 9,

1. What factors other than disposable income affect consumption and saving? What happens to consumption and saving if taxes increase? 2. Describe the major non-interest determinants of investment spending. What is the relationship between the real interest rate and investment spending? 3. Suppose a family's disposable income is $8,000 and it saves $2000 If their income rises to $10,000 and they plan to save $2800, what are their MPC and MPS? What would be the breakeven level of income? a. b. 4. What is the practical significance of the multiplier? Why is it important? 5. What is the relationship between the multiplier and the mpc? If the mpc is 2/3, what is the multiplier? If investment spending increased by $8 billion, how much would spending increase? 6. Why is the short run AS upward sloping? 7. Columns 1 and 2 in the table below are the aggregate supply schedule of an economy Price | Real | ADI | AD2 | AD3 | AD4 | ADS | ADS level GDP 260 | 2540 1940 | 1140 | i900 | 2000 | 2090 | 2390 | 240 2490 1040 1240 2000 2100 2190 2490 220 2430 1140 1340 2100 2200 2290 2590 200 2390 1240 1440 2200 2300 2390 2690 190 2350 1390 1590 2250 2350 2540 2740 180 2300 1440 1640 2300 2400 2590 2890 160 2200 1540 1740 2400 2500 2690 2990 140 2090 1640 1840 2500 2600 2790 3090 120 1940 1740 1940 2600 2700 2890 3190 100 1840 1840 2040 2700 2800 2990 3290 a. If ADI is the current aggregate demand, what is the equilibrium price level and GDP? What happens to the equilibrium price level and GDP if AD increases to AD2?