1. From a Keynesian perspective, the meager growth of real GDP during the current decade is...
1. From a Keynesian perspective, the meager growth of real GDP during the current decade is the result of
A.
lower government spending.
B.
a decline in investment spending.
C.
reduced personal consumption.
D.
All of the above.
2. From a Keynesian perspective, the meager growth of real GDP during the current decade is the result of a
A.
leftward shift of the investment function.
B.
movement down along the investment function.
C.
rightward shift of the investment function.
D.
movement up along the investment function.
3. Capital goods include
A.
equipment and factories.
B.
consumer durables.
C.
inventory investment.
D.
All of the above.
4. When the purchase of capital goods increases,
A.
planned investment increases.
B.
both planned and unplanned investment increase.
C.
the purchase of consumer durables also increases.
D.
None of the above.
5. From a Keynesian perspective, the growth of real GDP during the current decade would have been higher if
A.
the marginal propensity to save had been higher.
B.
investment had a greater multiplier effect.
C.
investment was higher and the multiplier was lower.
D.
None of the above.
6. From a Keynesian perspective, the recovery from the last recession would have had a larger multiplier effect if
A.
short-run aggregate supply had increased.
B.
government had lowered taxes and raised spending.
C.
the investment function had shifted rightward to its usual position.
D.
desired investment expenditures had not risen as much.
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1. From a Keynesian perspective, the meager growth of
real GDP during the current decade is...
Solve 1. 2. 3. 4. 5. 1 Keynesian Cross Assume that households' consumption function is given...
Solve 1. 2. 3. 4. 5.
1 Keynesian Cross Assume that households' consumption function is given by C(Y -T) 50+ 0.75(Y T), that firms' investment function is I(r) 150 10r, government spending is G 150, and the tax bill T 200. 1. What is the Marginal Propensity to Consume "MPC")? 2. What is the equilibrium level of real GDP in the goods market if the real interest rate is 5%? (Plug in r = 5 for 5%, rather than 0.05...
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10.) An economy has a marginal propensity to consume and Y* , income-expenditure equilibrium GDP,...
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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 multiplier is 4 and real GDP increases by S520 billion, the increase in investment...
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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...
Actual GDP (S Billions) Actual GDP growth rate Real GDP (S Billions) Real GDP growth rate(...
Actual GDP (S Billions) Actual GDP growth rate Real GDP (S Billions) Real GDP growth rate( GDP Price Deflator Rate of inflation Az? 800 100 842 D-? 3% B-7 820 0.714 E#7 01.980 6. The dollar amount of cell A is a) $700 b) $800 c) $850 d) $900 7. The dollar amount of cell B is a) $780 b) $808 c) $827 d) $842 8. The GDP price deflator in cell C (first decimal; no rounding) is a) 100.8...
2. Assume the following Keynesian model: C = 400 + .75Yd I = 200 G =...
2. Assume the following Keynesian model: C = 400 + .75Yd I = 200 G = 100 X = 150 M = 50 + .15 Yd T = 100 a. Find the aggregate expenditure function b. Find the equilibrium level of GDP. c. Using a “Keynesian cross” (or 45-degree line) diagram, show graphically the equilibrium in part a). d. What is the spending multiplier in this model? Tax multiplier? e. Show that leakages are equal to injections at equilibrium. f....
please explain? 1) In the closed economy Keynesian-cross model, a decrease in the interest rate _...
please explain?
1) In the closed economy Keynesian-cross model, a decrease in the interest rate _ planned investment spending and _ the equilibrium level of income. A. decreases: increases B. increases; decreases _C. decreases: decreases _D. increases; increases 2) Exhibit: Steady-State Consumption, Production and Depreciation Function c*, * , ** The Golden Rule level of the capital-labor ratio is: A k*A. B. above k*A but below k*B. _C. k*B. D. above k*B
Solve 1. 2. 3. 4. 5.
1 Keynesian Cross Assume that households' consumption function is given by C(Y -T) 50+ 0.75(Y T), that firms' investment function is I(r) 150 10r, government spending is G 150, and the tax bill T 200. 1. What is the Marginal Propensity to Consume "MPC")? 2. What is the equilibrium level of real GDP in the goods market if the real interest rate is 5%? (Plug in r = 5 for 5%, rather than 0.05...
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...
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....
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Actual GDP (S Billions) Actual GDP growth rate Real GDP (S Billions) Real GDP growth rate( GDP Price Deflator Rate of inflation Az? 800 100 842 D-? 3% B-7 820 0.714 E#7 01.980 6. The dollar amount of cell A is a) $700 b) $800 c) $850 d) $900 7. The dollar amount of cell B is a) $780 b) $808 c) $827 d) $842 8. The GDP price deflator in cell C (first decimal; no rounding) is a) 100.8...
please explain?
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