Topic: Working with Multipliers ( macroeconmics) Need help with the following exercises Please show step by step1.Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP? 2. Assume the MPC is 0.70 and the government increases spending on public school programs by $20 billion. What is the value of the initial impact on real GDP? What is the value of the total impact on real GDP?

Q: During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this…

A: The objective of the question is to identify the factor that could have caused the increase in real…

Q: When the MPC increases: a. the government spending multiplier stays the same b. the government…

A: The marginal propensity to consume refers to that portion of the increased income that was spent by…

Q: If GDP is $3,400 billion, the multiplier is 5, and I rises by 15, what is the new level of GDP? The…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: Assume the government cuts spending by Si billion and the marginal propensity to save was 0.1. a.…

A: Gross domestic product (GDP) is the total monetary value, or market value, of finished products and…

Q: 1 The following table shows income and consumption:  Calculate:  A- Saving (S),  B- Marginal…

A: Given  Y C 1000 1500 2000 2600 3600 3000 4800 3900 5500 4200 6200 4800

Q: The table shows real GDP, Y, consumption expenditure, C, investment, I, government expenditure on…

A: Aggregate expenditure is the value of all the final goods and services produced in the economy. The…

Q: Income and Expenditure Work It Out: Question 4 of 4 Recall that the consumption function is C = $100…

A: Equilibrium in the economy is reached where planned aggregate spending is equal to income.

Q: In the below table, C is consumption expenditure, Iis investment, G is government expenditure, and…

A: unplanned inventory is the difference between real output and aggregate demand. and the national…

Q: None

A: b. To calculate how many spending cycles would occur before consumer spending increased by $200…

Q: Answer the following questions:   Instructions: Enter your answers rounded to the nearest whole…

A: Given :  MPC = 0.9 Increase in investment by $11 billion

Q: Potential GDP C+1+G+X-IM) ,00 5,000 6,000 Real GDP (billions of dollars per year) In Figure 11-1,…

A: Recessionary gap is when Real GDP is less than potential GDP.

Q: e figure above: - Find the equilibrium GDP. What happens to the left of that equilibrium? What…

A: The equilibrium condition: Y = C+I+G.

Q: The diagram below shows the consumption schedule for a private closed economy. The level of planned…

A: Macroeconomics refers to the branch of economics that deals with the performance, structure,…

Q: How is the MPC defined? a) It is the fraction of a change in income which is not con

A: Marginal Propensity to consume refers to the rate of change of consumption with respect to the…

Q: Y                        C                      I                     G                       X…

A: Both answers are correct.   Before the increase in government spending (G), the equilibrium level of…

Q: 3. Suppose an economy had aggregate demand components with the following relationships: Consumption…

A: a. The computation of equilibrium income:Using the provided equations for consumption spending,…

Q: Suppose an economy with the following characteristics. Y = Real GDP or national income T= Taxes =…

A:

Q: During 2019, a country reported that its real GDP increased by $3.0 billion. The multiplier for this…

A: The objective of the question is to identify the factor that could have caused the increase in real…

Q: Background: Between 2002 and 2003, the United States government increased its purchases on military…

A: The multiplier effect is calculated by taking the ratio of change in an exogenous variable and…

Q: 1. If imports are $2 trillion, exports are $1.9 trillion, consumption is $3.8 trillion, investment…

A: The objective of the first two questions is to calculate the Gross Domestic Product (GDP) using the…

Q: Problems 3. Assume a simple closed economy, with an mpc equal budget amendment. The economy goes…

A: When the government spending exactly matches the tax revenue in an economy, then it is called a…

Q: If consumption expenditures are $1800 million, gross investment is $450 million, imports are $350…

A: here we calculate the GDP , budget deficit or surplus , private saving and disposable income by…

Q: What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change…

A: Expenditure Multiplier refers to the ratio of the change in Gross Domestic Product to the change in…

Q: The graph shows aggregate expenditures for the fictitious country of Carpistan. Suppose the…

A: The aggregate expenditure comprises the consumption, investment, government expenditure and the…

Q: Real GDP (Y) $14,000 $15,000 $16,000 $17,000 $18,000 The equilibrium level of GDP is $ billion. The…

A: Marginal Propensity to Consume, or MPC, is a term used in economics to describe how consumer…

Q: 6. Consider the following economy: C = 100+0.8Y, I = 200, G = 125, NX = 75. (a) Compute the…

A: GDP is the value of final goods and services produced in the economy within a given period of time.

Q: 1. What relationship does the income expenditure model represent? Why is it used?

A: Pay and Expenditure Model. The pay consumption model of financial aspects was created by John…

Q: 600 600 500 150 650 -50 700 700 575 150 725 -25 800 800 650 150 800 900 900 725 150 875 25 1,000…

A: (f). we already have autonomous consumption of $50 and MPC is 0.75. Initially planned expenditure is…

Q: Based on the economic data of a country presented in the following table, complete the table!…

A: The entire quantity of demand for all finished products and services generated in an economy is…

Q: The economy is in equilibrium when Real GDP is Which of the following did Keynes argue would be…

A: TE-TP equilibrium: Total expenditure (TE) is equivalent to the aggregate demand (AD) in…

Q: Question 1 Given the following data on simple closed economy: C = 10 +0.75 Y %3D I= 20 G= 40 where C…

A: Equilibrium in the goods and services market occurs where aggregate expenditure equals income

Q: You are told that taxes in this economy are equal to 100. What is the value of autonomous…

A: Autonomous consumption: Autonomous consumption is defined as consumption spending that occurs when…

Q: Answer the next four questions based on the following diagn C+I+G 200 1600 Show all your work Based…

A: Given the data from the above graph we have, Autonomous consumption(a)= 200National income or GDP…