12- Considering the Simple Keynesian Model, which of the following is true? When the value of the marginal propensity to consume increases, the slope of the aggregate demand line does not change a) b) There is no relationship between autonomous investment expenditures and aggregate demand. c)O When the value of the marginal propensity to consume increases, the slope of the aggregate demand line decreases. d) O When autonomous investment expenditures increase, the aggregate demand line shifts to downwards in parallel. When autonomous investment expenditures increase, the aggregate demand line shifts to upwards in parallel. e)

12- Considering the Simple Keynesian Model, which of the following is true? When the value of the marginal propensity to consume increases, the slope of the aggregate demand line does not change a) b) There is no relationship between autonomous investment expenditures and aggregate demand. c)O When the value of the marginal propensity to consume increases, the slope of the aggregate demand line decreases. d) O When autonomous investment expenditures increase, the aggregate demand line shifts to downwards in parallel. When autonomous investment expenditures increase, the aggregate demand line shifts to upwards in parallel. e)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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9 In the simple macro model with government and foreign trade, if the marginal propensity to consume out of disposable income is MPC, and the net tax rate is t, and the marginal propensity to import is m, then what will be the marginal propensity to consume out of national income? What will be the simple multiplier? Please show your steps
COURSE: MACROECONOMICS - IS-LM and/or MUNDELL FLEMING MODELS Refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a NULL impact on GDP. Then, refer to 2 different models (and/or conditions) under which an increase in the amount of money circulating in the economy has a MAXIMUM impact on GDP. EXPLAIN very briefly the mechanism by which each model generates that NULL or MAXIMUM impact on GDP. Hint: 2 conditions under increase of M (money) and how impact null (zero) and maximum on GDP. Example, considering both fiscal or monetary policies or liquidity trap model. Please graph and explain on detail both cases.
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7. Supply-side effects Consider a fictional economy that is operating at its long-run equilibrium. The following graph shows the aggregate demand curve (AD) and short-run aggregate supply curve (SRAS) for the economy. The long-run aggregate supply curve (LRAS) is represented by a vertical line at $6 trillion. The economy is initially producing at potential output. Suppose that fiscal authorities decide to decrease marginal tax rates. Assume that this change in marginal tax rates is perceived as a long-term change. Shift the appropriate curves to illustrate the supply-side view of the fiscal policy effect on output and the price level. (? 120 LRAS SRAS 100 AD 80 SRAS LRAS 40 AD 20 2 4 6 8 10 12 QUANTITY OF OUTPUT (Trillions of dollars) PRICE LEVEL
Suppose the marginal propensity to consume in an economy is 0.60. If the disposable income in this economy changes by $50 billion, consumption changes by $ billion 50 40 20 30 O O O O
Please give me correct answer and calculation Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
2. Consider a Keynesian IS-LM model for national income: Y = C(Y-T) + I (r) + G L(r,Y)= M³ IS: LM: where we consider Y and r as the endogenous variables and G, M³, and T as the exogenous variables. (a) Find the effect of a lump-sum tax, T, change on Y, i.e., OY/OT, using the implicit function theorem.
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