Domestic Outputor Income (GDP = DI)Consumption$244$2402502502602562702622802682902743002803102863202926) Refer to the above table. The MPS and the multiplierA. 0.6 and 1.67B. 0.4 and 2.5C. 0.6 and 2.5D. 0.4 and 1.67

The multiplier (m) , also stands for income multiplier, tells us that a given amount of increment in…

Domestic Output or Income (GDP = DI) $240 Consumption $244 250 250 260 256 270 262 280 268 290 300 274 280 310 286 320 292 6) Refer to the above table. The MPS and the multiplier A. 0.6 and 1.67 B. 0.4 and 2.5 C. 0.6 and 2.5 D. 0.4 and 1.67

Domestic Output or Income (GDP = DI) $240 Consumption $244 250 250 260 256 270 262 280 268 290 300 274 280 310 286 320 292 6) Refer to the above table. The MPS and the multiplier A. 0.6 and 1.67 B. 0.4 and 2.5 C. 0.6 and 2.5 D. 0.4 and 1.67

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Domestic Output
or Income (GDP = DI)
Consumption
$244
$240
250
250
260
256
270
262
280
268
290
274
300
280
310
286
320
292
6) Refer to the above table. The MPS and the multiplier
A. 0.6 and 1.67
B. 0.4 and 2.5
C. 0.6 and 2.5
D. 0.4 and 1.67

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5. Given the following income data, please answer the questions below. Real GDP Consumption Ig Government Exports $5000 $12000 $7000 $7000 $5000 $12000 $5000 $12000 $5000 $12000 $7000 $7000 $5000 $12000 $7000 $100000 $116000 $140000 $148000 $180000 $180000 $220000 $212000 $260000 $244000 Imports $16000 $16000 $16000 $16000 $16000 a. Solve for net exports in each row. b. Solve for aggregate expenditures (AE) in each row. c. State the value for the equilibrium GDP. d. If imports were to increase by $16000 so they are now equal to $32000, solve for net exports again. e. With this new export value, solve for aggregate expenditures in each row. f. State the value for the new equilibrium GDP. g. Solve for the multiplier (you can solve for either the actual or simple multiplier).
Solve it correctly and completely please. I will rate accordingly with 4 votes. Please do complete solution.
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Given the scatter diagram in Figure 8-1, what is the MPC (your best estimate)? a. 1 b. 2/3 c. 1/2 d. 1/3 I know the answer of this question answer is 2/3 but can you please give the explanation how 2/3 is the answer of the problem
Real GDP (dollars) 3,000 4,000 5,000 6,000 7,000 8,000 Consumption expenditure (dollars) 2,500 3,250 4,000 4,750 5,500 6,250 Investment (dollars) 500 500 500 500 500 500 Government expenditure (dollars) 500 500 500 500 500 500 In the above table, there are no taxes and no imports or exports The equilibrium level of expenditure for this economy is OA. no level because consumption expenditure is always less than real GDP B. $3,000 C. any level because investment always equals government expenditures OD. $5,000 www
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