Fill in the blanks in the table below. Assume that the MPC is constant over everyone in the economy. Show your work.
MPC |
Spending multiplier |
Change in Government Spending |
Change in Income |
10 |
50 |
||
2.5 |
-800 |
||
0.5 |
425 |
||
0.2 |
1200 |
Fill in the blanks in the table below. Assume that the MPC is constant over everyone...
Fill in the blanks in the table below. Assume that the MPC is constant over everyone in the economy. MPC Spending Multiplier Change in Government Spending Change in Income 10 100 2.5 -500 0.5 225 0.2 100
3. Fill in the blanks in the table below. Assume that MPC is constant for everyone in the economy. MPC Spending Multiplier Change in government spending Change in income 100 $15 20 $2,000 0.6 -$400 0.5 $450 $900
Fill in the blanks in the table below. Assume that MPC is constant for everyone in the economy. MPC Spending Multiplier Change in government spending Change in income 100 $15 20 $2,000 0.6 -$400 0.5 $450 $900
3. Fill in the blanks in the table below. Assume that MPC is constant for everyone in the economy. MPC Spending Multiplier Change in income Change in government spending $15 100 20 $2,000 0.6 -$400 $450 0.5 $900
3. Fill in the blanks in the table below. Assume that MPC is constant for everyone in the economy. MPC Spending Multiplier Change in government spending Change in income 100 $15 20 $2,000 0.6 -$400 0.5 $450 $900
3. Fill in the blanks in the table below. Assume that MPC is constant for everyone in the economy. MPC Spending Multiplier Change in government spending Change in income 100 $15 20 $2,000 0.6 -$400 $450 0.5 $900 4. Assume that the equilibrium in the loanable funds market is at interest rate of 1.25% and quantity of funds at $20 billion. Suppose the current government deficit is zero so government is not borrowing any money. a) Suppose now government increases...
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...
Fill in the missing values in the following table. Assume that the value of the MPC does not change as real GDP changes and that there are zero taxes. (Enter all values as integers) Real GDP (Y) $8,000 $9,000 $10,000 $11,000 $12,000 Consumption (C) $4,800 $5,400 $ 6,000 $ 6,600 $ 7,200 Planned Investment (U) $800 $800 $800 $800 $800 Government Purchases (G) $1,200 1,200 1,200 1,200 1,200 Net Exports (NX) - $200 - $200 - $200 - $200 -...
6. The government-purchases multiplier and the MPC Consider two closed economies that are identical except for their marginal propensity to consume (MPC). Each economy is currently in equilibrium with income and planned expenditure equal to $100 billion, as shown by the black Xs on the following two graphs. Neither economy has taxes that change with income. The grey lines show the 45-degree line on each graph. The first economy's MPC is 0.5. Therefore, its initial planned-expenditure function has a slope of 0.5...
The partial data in the table below are for the economy of Arinaka. Planned investment, government spending, and all taxes are autonomous. You may assume that the MPC, MPS, and MPM are constant.a. Fill in the blanks in table below. YTYDCSIGXNAEUnplanned Investment$650$90$520$40$85$75$1070045−5750800b. The value of equilibrium income is $ .c. If planned investment decreases by $20, the new value of equilibrium income is $ .