The figure below illustrates a two-sector commodity market model that takes into account consumption and investment. The letters A, Z, R, S, and D denote functions. Time left 0:59 In addition, the following specific values are known for the axes: F = 1000, T = 800, M = 650, N = 775, W = 920, P = 1000,E = 1100, E = 1300. In the original state of the market, total macro-level demand is illustrated by the R function. -D
The figure below illustrates a two-sector commodity market model that takes into account consumption and investment. The letters A, Z, R, S, and D denote functions. Time left 0:59 In addition, the following specific values are known for the axes: F = 1000, T = 800, M = 650, N = 775, W = 920, P = 1000,E = 1100, E = 1300. In the original state of the market, total macro-level demand is illustrated by the R function. -D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
3
![D
S
Time left 0:59:14
F
R
T
A
M
45°
N WP B E
a) If the value of the autonomous investment in the economy would increase compared to the original state (and
everything else remains unchanged), what could be the new macro demand function? Enter your letter:
b) Calculate the magnitude of the multiplier.
(use one decimal and decimal point)
c) What should happen in the economy (with all other factors unchanged) for Z to be the macro demand function in a new
state? 1:MCS:=MPC decrease~MPC increase~interest rate increaserinterest rate decrease}
d) What is the equilibrium income if the market moves to the state marked by the function S? Value by number:
N](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ceb82a8-3ae7-44e5-a9fa-d9ddb5f59a67%2Ff59b0728-45c5-4006-9d9c-72a7ee13a743%2Fb860hht_processed.png&w=3840&q=75)
Transcribed Image Text:D
S
Time left 0:59:14
F
R
T
A
M
45°
N WP B E
a) If the value of the autonomous investment in the economy would increase compared to the original state (and
everything else remains unchanged), what could be the new macro demand function? Enter your letter:
b) Calculate the magnitude of the multiplier.
(use one decimal and decimal point)
c) What should happen in the economy (with all other factors unchanged) for Z to be the macro demand function in a new
state? 1:MCS:=MPC decrease~MPC increase~interest rate increaserinterest rate decrease}
d) What is the equilibrium income if the market moves to the state marked by the function S? Value by number:
N
![The figure below illustrates a two-sector commodity market model that takes into account consumption and investment.
The letters A, Z, R, S, and D denote functions.
Time left 0:59:16
In addition, the following specific values are known for the axes: F = 1000, T= 800, M = 650, N = 775, W = 920, P = 1000, B
= 1100, E = 1300.
In the original state of the market, total macro-level demand is illustrated by the R function.
T
A
M
45°
N
WP B E
a) If the value of the autonomous investment in the economy would increase compared to the original state (and
everything else remains unchanged), what could be the new macro demand function? Enter your letter:
b) Calculate the magnitude of the multiplier.
(use one decimal and decimal point)
0D ם](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ceb82a8-3ae7-44e5-a9fa-d9ddb5f59a67%2Ff59b0728-45c5-4006-9d9c-72a7ee13a743%2Fm9qgjb_processed.png&w=3840&q=75)
Transcribed Image Text:The figure below illustrates a two-sector commodity market model that takes into account consumption and investment.
The letters A, Z, R, S, and D denote functions.
Time left 0:59:16
In addition, the following specific values are known for the axes: F = 1000, T= 800, M = 650, N = 775, W = 920, P = 1000, B
= 1100, E = 1300.
In the original state of the market, total macro-level demand is illustrated by the R function.
T
A
M
45°
N
WP B E
a) If the value of the autonomous investment in the economy would increase compared to the original state (and
everything else remains unchanged), what could be the new macro demand function? Enter your letter:
b) Calculate the magnitude of the multiplier.
(use one decimal and decimal point)
0D ם
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