Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and consumption increases to 677 Trillion. 1- What will the marginal propensity to consume be? 2-what will the multiplier be 3- Given a full employment level of aggregate expenditure GDP of 600 and a current level of aggregate expenditure of 560 how much would government spending have to change to regain the full employment level of GDP 4- how much would government taxes have to change by in order to regain the full employment level of GDP? 5- how much would government taxes have to change by in order to regain the full employment level of GDP?
Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and consumption increases to 677 Trillion. 1- What will the marginal propensity to consume be? 2-what will the multiplier be 3- Given a full employment level of aggregate expenditure GDP of 600 and a current level of aggregate expenditure of 560 how much would government spending have to change to regain the full employment level of GDP 4- how much would government taxes have to change by in order to regain the full employment level of GDP? 5- how much would government taxes have to change by in order to regain the full employment level of GDP?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and consumption increases to 677 Trillion.
1- What will the marginal propensity to consume be?
2-what will the multiplier be
3- Given a full employment level of aggregate expenditure
4- how much would government taxes have to change by in order to regain the full employment level of GDP?
5- how much would government taxes have to change by in order to regain the full employment level of GDP?
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