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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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