Given that national income is 7800 crore and consumption expenditure is 640 crore, what is the average propensity to consume? When income increases to 1000 crore and consumption increases to 790 crore, what will be the marginal propensity to consume?

Q: How will an increase in the amount of scholarships and pensions given by the government affect the…

A: Scholarship and pension payment by government are transfer payments which are unilateral cash flows,…

Q: if the total imports is greater than total exports the answer will be negative in GDP?

A: In an open economy, the overall GDP of the country is influenced by the international trade made by…

Q: From the given data calculate the investment expenditure Level of income = 6000 Consumption = 250

A: Investment expenditure refers to the expenditure incurred by an individual or a firm for capital…

Q: Assuming that increase in investment is rs1000 crore and marginal propensity to consume is 0.9 then…

A: Any increase in expenditure on investment  has a more than proportionately favourable effect on…

Q: For each of the following products state if it is a final or intermediate good and explain why? A…

A: Intermediate goods: - Intermediate goods are those goods that are used in the production of other…

Q: Suppose US atrtomaker builds and operates a new factory in Italy. Future production from such…

A: Gross Domestic Product (GDP) measures the total value of all goods and services produced within the…

Q: Investment in an economy increases by 2000 crore. Suppose marginal prospensity to save is 0 what is…

A: The total of the factor income that are earned by the normal residents of a country during a…

Q: When a business buys a new computer to design its product, this spending is called?   A. Goverment…

A: Expenditure- It is the amount that is spent on something. It is divided into four parts i.e.…

Q: The equality between total production, income and expenditure does not hold if different set of…

A: Total production is the output which is available in an economy and is accounted for the calculation…

Q: what is ? 1-)Expenditure Approach 2-)Income Approach 3-)Production Approach

A: Answer -  Expenditure Approach - Expenditure is a method used for calculating "GDP" . By, taking…

Q: An increase of $250 million investment in an economy resulted in total increase in income of $1000…

A: The value of MPC can be calculated by using the below formula: K = 11 - MPCHere, K is the…

Q: For a consumption dependent economy like Malaysia and the United States, which factor contributes…

A: Personal Consumption Expenditures. Consumer spending contributes almost 70% of the entire us…

Q: By How Much Will U.S. GDP Grow Next Year?

A: It was forecasted in the Federal open market Committee meeting which was held on 11th December,2019…

Q: A decline in the interest rate is unlikely to have no effect on GDP? Agree or disagree? Why?

A: Below is the component of GDP: *Consumption *Investment *Government Expenditure *Net-Export

Q: roblem 10. In an economy, national income increases by 500 crore as a result of increase in vestment…

A:

Q: As an economist with the World Bank you have been asked to measure the Gross Domestic Product for…

A: Gross domestic product (GDP) measures the market value of final goods and services produced by an…

Q: What is macro-economics and is it important in the economy of a country?

A: Macro economics is the study of economy as a whole. It takes into consideration the entire economy…

Q: An economy is based on three sectors, agriculture, manufacturing, and energy. Production of a…

A: An input-output model shows different industries that contribute to each other. The interlinked…

Q: What is GDP in econimic terms?

A: The Gross Domestic Product (GDP) is the standard measure of value-added produced during a certain…

Q: At any given amount of income, an increase in consumption will result in a. A rise in total demand…

A: Consumer use their income in two ways: 1. On consumption of goods and services, 2. On saving for…

Q: The investment category of GDP measures three different types of expenditures. What are they? Why is…

A: Expenditure applies to payments made for commodities or services or to obligations accrued in return…

Q: If consumption expenditure is $30 billion, investment spending is $15 billion, government spending…

A: Consumption = $30 billion Investment = $15 billion Government spending = $12 billion Exports = $4…

Q: In Australia, in the year of 2014 the value of MPS was 0.61  What would have been the value of MPC…

A: The data presented in the above question is:- In the year of 2014, the MPS in Australia is 0.61  The…

Q: Nondurable Goods are:     A. Goods that don't last   B. Goods that last a few years   C. Goods…

A: In economics, based on durability goods are divided into durable goods and non-durable goods…

Q: “Bangladesh Prime Minister Sheikh Hasina on Sunday announced stimulus packages to the tune of Taka…

A: Government polices are very important for an economy that is suffering from recession or for the…

Q: In an economy MPC = 0.6 if invesment increases by 600 crore calculate the increase in the income

A: Marginal propensity to consume (MPC) is the ratio of the change in consumption to the change in…

Q: When examining GDP on a global scale, two issues become apparent. Is it conceivable to take these…

A: Two fundamental concerns occur when comparing GDPs.The underground economy and expense of living are…

Q: n an economy investment increases by 120 crores. The value of multiplier is 4. Calculate the…

A: Increase in investment = 120 crores. Value of multiplier = 4

Q: A two sector economy has a total income of rs 150 billion and marginal propensity to consume (MPC)…

A: The total income  of $150 billion would result in the real GDP. The ratio of change in consumption…

Q: 1. Personal Disposable Income is 1,000 crore c sumption expenditure is 750 crore, find

A: Consumption Expenditure is generally known to be as the spending basically by households on…

Q: relationships between total production, total income and total spending?

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: In an economy, the revenue expenditure is $3300 and capital expenditure is $4400  Calculate total…

A: The information being given is:- Revenue expenditure = $3300  Capital expenditure = $4400 We have to…

Q: n that national income is 800 crore nd consumption expenditure is 7640 rore, what is the average…

A:

Q: What was the GDP rate IN AMERICA before pandamic

A: GDP rate is the real economic growth rate at which a nation's Gross Domestic Product (GDP) grows…

Q: What are some example possible reasons for a decline in the level of potential GDP?

A: Three reasons for a decline in the level of potential GDP is decrease in the population i.e. the…

Q: How will an increase in taxes applied to businesses affect the GDP based on the Expenditure…

A: Due to increase in taxes,gross domestic capital formation would decrease.

Q: What is the US GDP for the first quarter and second quarter of 2020?  What is the personal…

A: In Keynesian economics, aggregate demand plays a very important role in determining income level and…

Q: 8. Comparing total expenditures and total production The following graph shows total production (TP)…

A: Gross domestic product is the summation of a country's final goods and services. A rise in GDP means…

Q: increase the corporate tax rate. b. An increase in the interest rate due to an increase in the cost…

A: By and large, planned investment is how much trading companies intend to embrace during a year. Real…