In the table below, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is Real Consumption GDP expenditure (dollars) (dollars) 3,000 2,500 4,000 3,250 5,000 4,000 6,000 4,750 5,500 7,000 8,000 6,250 Investment (dollars) 500 500 500 500 500 Government expenditure (dollars) 500 500 500 500 500 500 500

In the table below, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is Real Consumption GDP expenditure (dollars) (dollars) 3,000 2,500 4,000 3,250 5,000 4,000 6,000 4,750 5,500 7,000 8,000 6,250 Investment (dollars) 500 500 500 500 500 Government expenditure (dollars) 500 500 500 500 500 500 500

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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