Homework Answers
If real investment Increases by $500 billion, then the C+I+G+X Curve will Shift up up vertically by $500 billion. But the Increase in Output will be more than $500 billion due to the working of the Multiplier Effect.
Hence, Option C is correct.
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If real investment increases by $500 billion, the C + / + G + X curve...
Suppose the multiplier is 2 and the short-run aggregate supply curve is positively sloped. Investment increases...
Suppose the multiplier is 2 and the short-run aggregate supply curve is positively sloped. Investment increases by $10 billion. In the short run, equilibrium real GDP a. does not change. o b. decreases by less than $20 billion. oc increases by $20 billion. increases by less than $20 billion. O e. increases by more than $20 billion. od.
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is...
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately change real GDP? O A $75 billion OB. $50 billion OC $ 150 billion D. $ 200 billion QUESTION 22 Which of the following statements is FALSE? O A When income increases MPS is constant When income increases APS Increases C. When income increases MPC is increases D. When income increases APC decreases QUESTION 23 If the...
If the multiplier is 4 and real GDP increases by S520 billion, the increase in investment...
If the multiplier is 4 and real GDP increases by S520 billion, the increase in investment spending must have been a. $110 billion. O b. $120 billion. O c. $140 billion d. $130 billion.
3,4,5 please! QUESTION 3 An increase in planned real investment spending causes O a shift of...
3,4,5 please!
QUESTION 3 An increase in planned real investment spending causes O a shift of the C+I+ G+X curve and a movement along the aggregate demand curve. O a shift of the C + I+ G +X curve that causes the aggregate demand curve to shift. O a shift of the C+1+ G+X curve but has no effect on the aggregate demand curve. a movement along the C + I+ G+X curve and a shift of the aggregate demand...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If the MPC -0.75, a decrease in person by A) $20 billion. B) $40 billion. C) $60 billion. D) $80 billion. Table 10.1 Consumption C - $1.0+ 0.80YD Investment $1.5 Government purchases $2.2 Net exports Taxes Government transfer payments $0 (all values are in billions of dollars) 2, 12. Refer to Table 10.1. Equilibrium real GDP for this economy is equal to A) $5.75 billion....
If the marginal propensity to consume (MPC) is 2/3 and investment spending increases by $2 billion,...
If the marginal propensity to consume (MPC) is 2/3 and investment spending increases by $2 billion, the level of real output (GDP) will: increase by $10 billion. O increase by $3 billion. increase by $6 billion. O Increase by $8 billion
of 40> Suppose the Fed sells $500 billion in government securities and the reserve ratio is...
of 40> Suppose the Fed sells $500 billion in government securities and the reserve ratio is 0.1. Calculate the resulting change in the money supply. Be certain to include a negative sign. change in the money supply: $ billion Next, show the impact this open market operation wilEhave on the graph in the short run 10 Solow growth curve Short-run aggregate supply 7 Next, show the impact this open market operation will have on the graph in the short run....
1.) If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion,...
1.) If the marginal propensity to consume is 0.75 and investment spending increases by $200 billion, equilibrium GDP will increase by____. $350 billion $150 billion $200 billion $266.7 billion $800 billion 2.) AE = 3000 + 0.75*RGDP. Given this equation for AE, find equilibrium GDP $1,000 $750 $12,000 $2,250 3.) The four components of aggregate planned expenditure are the real interest rate, disposable income, wealth, and expected future income the real interest rate, consumption expenditure, investment, and government expenditures consumption...
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregat...
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregate supply schedule for an economy What is the quantity of real GDP at the short-run macroeconomic equilibrium? Price level (GDP deflator) The quantity of real GDP at the short-run macroeconomic equilibrium is s billion 100 Real GDP Real GDP Real GDP supplied supplied demanded in short run in long run (billions of 2007 dollars) 200 500 350 500 500 500 400 650...
1. 2. During 2013, a country reported that its real GDP increased by $3.0 billion. If...
1.
2.
During 2013, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP? Exports increased by $0.3 billion. Exports decreased by $0.3 billion. Investment decreased by $0.3 billion. o Imports increased by $0.3 billion. Government expenditure on goods and services increased by $3 billion. During 2013, exports increase from $1.0 trillion to $1.5...
Suppose the multiplier is 2 and the short-run aggregate supply curve is positively sloped. Investment increases by $10 billion. In the short run, equilibrium real GDP a. does not change. o b. decreases by less than $20 billion. oc increases by $20 billion. increases by less than $20 billion. O e. increases by more than $20 billion. od.
QUESTION 21 Suppose investment spending initially increases by $50 billion in an economy whose MPC is 2/3. By how much will this ultimately change real GDP? O A $75 billion OB. $50 billion OC $ 150 billion D. $ 200 billion QUESTION 22 Which of the following statements is FALSE? O A When income increases MPS is constant When income increases APS Increases C. When income increases MPC is increases D. When income increases APC decreases QUESTION 23 If the...
If the multiplier is 4 and real GDP increases by S520 billion, the increase in investment spending must have been a. $110 billion. O b. $120 billion. O c. $140 billion d. $130 billion.
3,4,5 please!
QUESTION 3 An increase in planned real investment spending causes O a shift of the C+I+ G+X curve and a movement along the aggregate demand curve. O a shift of the C + I+ G +X curve that causes the aggregate demand curve to shift. O a shift of the C+1+ G+X curve but has no effect on the aggregate demand curve. a movement along the C + I+ G+X curve and a shift of the aggregate demand...
decrease in personal taxes from $100 billion to 580 billion will increase real GDP 11. If the MPC -0.75, a decrease in person by A) $20 billion. B) $40 billion. C) $60 billion. D) $80 billion. Table 10.1 Consumption C - $1.0+ 0.80YD Investment $1.5 Government purchases $2.2 Net exports Taxes Government transfer payments $0 (all values are in billions of dollars) 2, 12. Refer to Table 10.1. Equilibrium real GDP for this economy is equal to A) $5.75 billion....
If the marginal propensity to consume (MPC) is 2/3 and investment spending increases by $2 billion, the level of real output (GDP) will: increase by $10 billion. O increase by $3 billion. increase by $6 billion. O Increase by $8 billion
of 40> Suppose the Fed sells $500 billion in government securities and the reserve ratio is 0.1. Calculate the resulting change in the money supply. Be certain to include a negative sign. change in the money supply: $ billion Next, show the impact this open market operation wilEhave on the graph in the short run 10 Solow growth curve Short-run aggregate supply 7 Next, show the impact this open market operation will have on the graph in the short run....
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregate supply schedule for an economy What is the quantity of real GDP at the short-run macroeconomic equilibrium? Price level (GDP deflator) The quantity of real GDP at the short-run macroeconomic equilibrium is s billion 100 Real GDP Real GDP Real GDP supplied supplied demanded in short run in long run (billions of 2007 dollars) 200 500 350 500 500 500 400 650...
1.
2.
During 2013, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP? Exports increased by $0.3 billion. Exports decreased by $0.3 billion. Investment decreased by $0.3 billion. o Imports increased by $0.3 billion. Government expenditure on goods and services increased by $3 billion. During 2013, exports increase from $1.0 trillion to $1.5...
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