In the country of Krugman, a business spent $100 million building a factory. GDP eventually increased by 200million. People spend 11% of every dollar on imports. What is the marginal propensity to consume in thiseconomy? Write your answer as a number, between 0 and 1. If you think the answer is 0, write 0.00, not 0.Answer:Study the graph below. When will the multiplier be biggest?Select one:The multiplier will be the same size no matter what Aggregate Demand isb. The multiplier will be one no matter what aggregate demand isWhen aggregate demand is at AD1d. When aggregate demand is at AD3e When aggregate demand is at AD2Price LevelAD₁ASe All of these are trueAD₂AD₁GDPWhy is potential output called potential, when it is not actually the most the economy can produce?Select one:a. Because potential is the most the economy can produce right now, with the technology and workersand equipment we have right now.Ob. Because economists just like to be confusing for no reasonOc. None of these are trueOd.Because potential is the most the economy can produce in the long run. If production is overpotential, prices will rise and this will eventually make people less willing to do extra work

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In the country of Krugman, a business spent $100 million building a factory. GDP eventually increased by 200 million. People spend 11% of every dollar on imports. What is the marginal propensity to consume in this economy? Write your answer as a number, between 0 and 1. If you think the answer is 0, write 0.00, not 0. Answer:

In the country of Krugman, a business spent $100 million building a factory. GDP eventually increased by 200 million. People spend 11% of every dollar on imports. What is the marginal propensity to consume in this economy? Write your answer as a number, between 0 and 1. If you think the answer is 0, write 0.00, not 0. Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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