Our economist estimate that citizens in our country have an MPC of 0.90. To increase GDP by $1,000, how much should we increase government spending?

Q: So, let's consider again our problem from before. Given the necessary increase in GDP of $360 and…

A: Gross domestic product is the total market value of all the services and finished goods being…

Q: suppose the government wishes to illuminate recessionary of a gdp of 100 billion in the MPC is .075.…

A: To calculate increase in government spending we have to first calculate the spending multiplier.

Q: I'm doing economics homework and the question is asking If taxes were cut by $1 trillion and the MPC…

A: ]MPS basically stands for Marginal Propensity to Save, which is a term used in macroeconomics to…

Q: Given our MPC of 0.60 and our necessary increase in GDP of $360, how much should we increase…

A: The disposable income available to the consumers can be spent on consumption or can be saved. The…

Q: Calculate MPS if we know that MPC Is 0.67

A: The information given is the value of Marginal propensity to Consume which is:- 0.67 We have to find…

Q: Given the necessary increase in GDP of $360 and the MPC of 0.70, how much should we reduce taxes to…

A: The multiplier value depends on the marginal propensity consume. The higher the value of MPC ,…

Q: Suppose the MPC is 0.8. The government wants to decrease Total Spending by $600. How should it…

A: MPC=0.8 Total Spending=$600 Multilplier= Change in Y/Change in G=1/1-MPC 600/Change in G=1/1-MPC

Q: If the MPC is 0.9 what will happen to GDP if the government cut spending bt S2.

A: Given data: MPC, c=0.9Government spending, G=$2

Q: The government of a country decides to double its current level of spending, causing real GDP to…

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

Q: If the MPC is 0.4, the MPI is 0.2, and the government increases spending by $50 million, what will…

A: Marginal Propensity to Consume, is a measure in economics that indicates the proportion of an…

Q: If the MPC in an economy is 0.9, a $4 billion increase in government spending will ultimately…

A: MPC or Marginal Propensity to Consume measures the increase in spending with the increase in…

Q: if actual real GDP is greater than the equilibrium level of real gdp what happens to restore…

A: In economics, the final demand domestically can be defined as the total demand for final services…

Q: Suppose an economy has an MPC = 0.875. 1. If government spending increase by $100, how much…

A: In economics, the marginal propensity to consume is a metric that quantifies induced consumption,…

Q: If the MPC is​ .75, the government spending multiplier is

A: The government spending multiplier is the amount by which a change in government spending affects…

Q: If the MPC is 0.9 what will happen to GDP if the government cut spending bt $2.

A: ∆Y = 11-c∆G where Y = GDP            c = MPC            G = government spending

Q: MPC is 0.60. To increase GDP by $360, how much should we decrease taxes?

A: MPC is 0.60. To increase GDP by $360, how much should we decrease taxes?

Q: If MPC is = 0.6 and government spending decreases by dollar 100 billion, what happens to equilibrium…

A: Marginal proepensity to consume = 0.6 Decrease in spending = $100 billion

Q: Calculate the value of MPS when the value of MPC is 0.13

A: The formula for MPS is given as:- MPS = 1 - MPC

Q: Our economics have redone their calculations. They now estimate that citizensin our country have an…

A: MPC = 0.60 Decrease in GDP = 250

Q: I'm doing economics homework and I'm being asked to find the multiplier when the MPS is 0.12 and MPC…

A: Given  MPS = 0.12 MPC = 0.88

Q: What happens to the real GDP if the government increases spending by $50 million and the government…

A: The government multiplier = 1.5 Government spending = $50 million

Q: The government spends an additional $926 billion and the marginal propensity to consume is 66%. How…

A: According to the question, it is given that : The government spends an additional $926 billion The…

Q: Suppose the MPC in an economy is 0.95. What should the government do with taxes if they want to…

A: The magnitude of change in income due to change in autonomous spending is known as multiplier. The…

Q: If taxes ane decreased by $200 billion, given an MPC of .6, calculate the change in GDP. Give your…

A: The method of state receiving funds from its residents to compensate for basic utilities is known as…

Q: net taxes were lowered from $5000 to $1000, the MPC is .75, and autonomous consumption spending is…

A: Disposable income refers to the remaining amount after paying all the necessary taxes.

Q: If the MPC is 0.8 and the investment in a country increases by $900 billion calculate the total…

A:

Q: The MPC is 0.5. what happens to the real GDP if the government increases spending by $10 million?

A: Given MPC = 0.5 Increase in government spending = $10

Q: How do you recommend the government change GDP and taxes to stabilize the economy in each of the…

A: In an economy, government intervenes at the marketplace with its economic policies to deal with the…

Q: You have the following information. Calculate equilibrium GDP and enter your number in the box…

A: Balanced budget: It means budget having revenue equal to the expenditure.

Q: If government spending is permanently increased, consumption and investment would fail? True or…

A: Government spending refers to the entirety of the funds disbursed by a government to cover the costs…

Q: f the MPC IS 0.9 What should the government do to increase GDP by $4500?

A: The multiplier effect occurs due to an injection in the circular flow of income that increases…

Q: If the MPC in an economy is 0.90, a $4 billion increase in government spending will ultimately…

A: Answer: Given, MPC = 0.90 Change in Government spending=44 billion The following formula will be…

Q: The government spends an additional $668 billion and the marginal propensity to consume is 79%. How…

A: Government spending multiplier: - it is a fraction that shows the magnitude of the change in…