a. Suppose nominal GDP of a small economy in 2012 was $43 billion, the nominal GDP in 2018 was $96 billion, and the 2012 and 2018 consumer price indexes were 100 and 180, respectively. Therefore, between 2012 and 2018 the real GDP (in 2012 prices) increased by --- Show how you have derived your answer. b. The value of MPC in an economy is 0.76. The economy's investment expenditure (I) drops from $580 billion to $415 billion. As a result, the economy's aggregate income (Y) will change by $____ you have found your answer. percent. Show how

a. Suppose nominal GDP of a small economy in 2012 was $43 billion, the nominal GDP in 2018 was $96 billion, and the 2012 and 2018 consumer price indexes were 100 and 180, respectively. Therefore, between 2012 and 2018 the real GDP (in 2012 prices) increased by --- Show how you have derived your answer. b. The value of MPC in an economy is 0.76. The economy's investment expenditure (I) drops from $580 billion to $415 billion. As a result, the economy's aggregate income (Y) will change by $____ you have found your answer. percent. Show how

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 1.2P

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give answer woith explaantion
The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers (gray-shaded cells) in the table. Instructions: In the table, enter your answers for consumption as a whole number. Round your answers for APC and APS to 3 decimal places. Round your answers for MPC and MPS to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Level of Output and Income (GDP = DI) Consumption Saving АРС APS MPC MPS $480 $-16 520 560 16 600 32 640 48 680 64 720 80 760 96 800 112 Instructions: Enter your answer as a whole number. b. What is the break-even level of income in the table? 2$ What is the term that economists use for the saving situation shown at the $480 level of income? |(Click to select) V c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes: The MPS: (Click to select) V The APC: (Click to select) V The MPC: (Click to…
The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers (gray-shaded cells) in the table. Instructions: In the table, enter your answers for consumption as a whole number. Round your answers for APC and APS to 3 decimal places. Round your answers for MPC and MPS to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Level of Output and Income (GDP DI) Consumption Saving APC APS MPC MPS $240 $-2 260 280 2 300 4 320 6 340 8 360 10 380 12 400 14 Instructions: Enter your answer as a whole number. b. What is the break-even level of income in the table? What is the term that economists use for the saving situation shown at the $240 level of income? (Click to select) c. For each of the following items, indicate whether the value in the table is either constant or variable as income changes: The MPS: (Click to select) The APC: (Click to select) v The MPC: (Click to select) v The…