For each of the following values for the MPC, determine the size of the simple spending...
For each of the following values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending:
1. MPC = 0.9 -
2. MPC = 0.75 -
3. MPC = 0.6 -
Homework Answers
Add Answer to:
For each of the following values for the MPC, determine the size
of the simple spending...
Response Questions Part A To B A) Use Your Own Words For Your Response: What is the relationship between demand side ec...
Response Questions Part A To B A) Use Your Own Words For Your Response: What is the relationship between demand side economics and the budget deficit? B) For each of the following values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending: a. MPC = 0.9- b. MPC = 0.75– c. MPC = 0.6 –
if the mpc is 0.75 what is the size of the multiplier and the total change...
if the mpc is 0.75 what is the size of the multiplier and the total change in real gdp demanded following a $10 billion increase in spending?
Response Questions Part A To C Assume the simple spending multiplier equals 10. Determine the size...
Response Questions Part A To C Assume the simple spending multiplier equals 10. Determine the size and direction of any changes of the aggregate expenditure line, real GDP demanded, and the aggregate demand curve for each of the following: A) Spending rises by $8 billion at each spending level B) Spending falls by $5 billion at each income level C) Spending rises by $20 billion at each income level
Investment Problem: 1. Assume the MPC is 3/4, if investment spending increase by $50 billion, the...
Investment Problem: 1. Assume the MPC is 3/4, if investment spending increase by $50 billion, the level of GDP will: 2. Assume the MPC is 2/3, if investment spending decreases by $30 billion, the level of GDP will: Export Problem: 3. If the multiplier in an economy is 4, a $50 billion increase in exports will: 4. If the multiplier in an economy is 3,a $30 billion decrease in exports will: Balanced Budget Problem: 5. If the MPC is .75...
Response Questions Part A To D Assume the government purchases decrease by $10 billion, with other...
Response Questions Part A To D Assume the government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion. a. 0.9 b. 0.8 c. 0.75 d. 0.6
14. Consider the following sets of values for MPC, t, and m, and recall that the...
14. Consider the following sets of values for MPC, t, and m, and recall that the simple multiplier is given by 1/[1 – MPC (1 – t) – m). Assume the AS curve is upward sloping and identical in each economy. Economy A: MPC =0.84, t = 0.15, m=0.19 Economy B: MPC =0.84, t = 0.40, m=0.19 Economy C: MPC =0.93, t = 0.15, m=0.12 Economy D: MPC = 0.75, t = 0.30, m=0.27 Economy E: MPC = 0.75, t...
#6 Consider an economy that is operating at the full-employment level of real GDP with MPC=0.7...
#6 Consider an economy that is operating at the full-employment level of real GDP with MPC=0.7 MPC=0.7 . The short-run effect on equilibrium real GDP of a $50 billion increase in government spending ( G G ), balanced by a $50 billion increase in taxes, is...…………. abillion (Increase or Decrease) in real GDP. #7 Suppose that the MPC in a country is 0.9. Complete the following table by calculating the change in GDP predicted by the multiplier process given each...
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...
The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC...
The economy is in equilibrium, TP = TE, and Real GDP is $2,000 billion. The MPC is 0.75, the multiplier is operative, and idle resources exist at each expenditure round. Autonomous investment spending falls by $10 billion. As a result, the TE curve shifts __________, inventory levels unexpectedly __________, business firms __________ the quantity of goods and services they produce, and Real GDP __________ by __________. downward; rise; decrease; falls; $7.5 billion downward; fall; increase; rises; $40 billion downward; rise;...
The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to...
The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax rate (t), and the marginal propensity to import (m). a. Recall that z, the marginal propensity to spend out of national income, is given by the simple expression Z-MPC(1-1)-m. By using this expression, compute z and the simple multiplier for each of the economies and fill in the table. (Round your response to two decimal...
Response Questions Part A To B A) Use Your Own Words For Your Response: What is the relationship between demand side economics and the budget deficit? B) For each of the following values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending: a. MPC = 0.9- b. MPC = 0.75– c. MPC = 0.6 –
Response Questions Part A To C Assume the simple spending multiplier equals 10. Determine the size and direction of any changes of the aggregate expenditure line, real GDP demanded, and the aggregate demand curve for each of the following: A) Spending rises by $8 billion at each spending level B) Spending falls by $5 billion at each income level C) Spending rises by $20 billion at each income level
Response Questions Part A To D Assume the government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion. a. 0.9 b. 0.8 c. 0.75 d. 0.6
14. Consider the following sets of values for MPC, t, and m, and recall that the simple multiplier is given by 1/[1 – MPC (1 – t) – m). Assume the AS curve is upward sloping and identical in each economy. Economy A: MPC =0.84, t = 0.15, m=0.19 Economy B: MPC =0.84, t = 0.40, m=0.19 Economy C: MPC =0.93, t = 0.15, m=0.12 Economy D: MPC = 0.75, t = 0.30, m=0.27 Economy E: MPC = 0.75, t...
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...
The following table shows alternative hypothetical economies and the relevant values for the marginal propensity to consume out of disposable income (MPC), the net tax rate (t), and the marginal propensity to import (m). a. Recall that z, the marginal propensity to spend out of national income, is given by the simple expression Z-MPC(1-1)-m. By using this expression, compute z and the simple multiplier for each of the economies and fill in the table. (Round your response to two decimal...
Most questions answered within 3 hours.
-
a 1.2-cm-diameter solenoid passing through the center of a
7.0-cm-diameter loop. The magnetic field inside the...
asked 5 minutes ago -
One of the difficulties in geolocational profiling plant-derived
drugs is obtaining reliable standards. Elaborate on this...
asked 26 minutes ago -
An animal whose limb temperature is colder compared to the core
is displaying....
d. counter current...
asked 26 minutes ago -
Find the expected value E(X), the variance Var(X) and the
standard deviation σ(X) for each of...
asked 1 hour ago -
home / study / science / physics / physics questions and answers
/ 2. an object...
asked 48 minutes ago -
What do you think every computer science department must teach,
concerning the fact that technology rapidly...
asked 46 minutes ago -
An open cart is travelling at constant speed on a level surface.
A load of coal...
asked 52 minutes ago -
A ski-jumper leaves the ski track moving in the horizontal
direction with a speed of 25.0...
asked 1 hour ago -
A commercial lubricant, Dubdeefordy, has K = SN/SM = 13.1 for
immiscible solvent M and N....
asked 1 hour ago -
Are there any potential drawback to the job-crafting approach?
If so, how can they be minimized?
asked 1 hour ago -
12. To accommodate growth until a new version of IP could be
standardized and adopted, a...
asked 1 hour ago -
Create a separation scheme flow chart/diagram to isolate methyl
salicylate from a product mixture containing the...
asked 1 hour ago