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If the MPC in an economy is .9 and aggreagte expenditures increase by $4 billion, the equlibrium
a. 40 billion
b. 4.9 billion
c. 36 billion
d. 4 billion
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- suppoose the MPC is 0.9 aand the MPI is 0.1.If government expenditure go up $100 billion while taxex fall $10billion, what hhaappen ttoo thhe equlibribum oof real GDP40. If the expenditure mutiplier in a closed economy without govemment activites equais 4 what is the MPC in ths economy? a. 025 b. 0.20 C. 0.75 d. 0.80 Use the information below to answer questions 41-43. In an economy at zero disposable income consumption is 1200 milion. The marginal propensity to save in this economy is 0.25 41. What is the consumption function for this economy? a. C 1200 0.25Yd b. C 1200 0.75YA C C-0+0.75Yd d. C=-1200 25Yda 42.If Yd = 6000 milion, what is consumption expenditure in this economy? a. 6000 million b. 5700 million e. 7200 millon d. 5200 million 43. What is saving in this economy at Yd= 6000 milion? a -1200 b. 300 C. 1200 d. 300 44. An increase in minimum wages unmatched by high productivity leads to a. demand pull inflation b. cost push inflation e. imported inflation d. creeping infation 45 Full employment occurs when a. actual output exceeds potential output b. actual output is less than potential output C. actual output is equal to potential output…17. If the MPC were equal to zero, the expenditure multiplier would be * a. Less than zero b. zero c. between zero and one d. one e. greater than one
- The spending multiplier, m, is V - MPC). af the MPC is 0.9, what is the spending muitiplier? bị Now suppose government spending increases by $90 million By how much will GDP rise? milionCalculating the MPSAnd MPC. In one year a consumer income increase by $200 and her consumption increase by $140 ? Her marginal propensity to consume is equal to __. Her marginal prosperity to save is equal to __. (Thanks)suppose that the was experiencing a recession and the government inject R50 billion, resulting in a total change in real GDP of R200 billion. calculate MPC?
- If the spending multiplier is 10, a S100 increase in government spending and Sl00 increase in taxes, will cause a inerease in GDP by 0 100 900 $1,000A fall in mps raises the GDP multiplier. O True O FalseEV Text Predictions: On The table below shows some of the expenditure amounts in the economy of Arkinia. The MPC, the MTR, and the MPM are all constant, as are the values of the three injections. a. Complete the table below. W 8 ZIN 200 SAN 400 500 GOO Aggregate expenditures ($billions) 700 HANS 800 600 HOD 200 T GO 1541 100 Accessibility: Investigate YD GB 200 460 620 C 400 130 195 Income (Sbillions) 325 The Economy of Arkinia 455 600 Search 5 800 -3 10 40 100 Tools MAL I se A SB 50 Se 58 50 30 50 Sa Draw a 45° line (labelled Y) and the aggregate expenditure function, labelled AE1. Identify expenditure equilibrium with the letter et. Use the tool "et" to show the expenditure equilibrium. Plot only the endpoints of Y and AE. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. G 180 AE₁ IMO 180 THIN 13 180 186 tac taid X 50 sa SAMSUNG 50 10 50 50 54 549 50 IM 40…
- . If the consumption function in an economy as follows C = 50 + 0.75Y and the following variables fixed at investment = 250 MD Government expenditure = 200MJD, Net exports = 200MJD, so the equilibrium income is equal Options are 3800,2800,1800,4800. Don't copy previous question becuase it is wrong?Private Spending FE 0 45° O OE/OA. H OFG/BD. OBD/FG. OBD/AD. A B GDP D Refer to the diagram. The multiplier in this economy is C+ lg + Xn2 C+lg C+ lg + Xn1ass Activity i Saved The following are the parameters for the simple economy of Minnerva, which has no government involvement and no international trade. C 1,360+0.60Y 1=1,450 a. The value of expenditures equilibrium is S b. The value of the multiplier is Round your answer to 3 decimal places. c. If investment increases by 380, the new value of expenditures equilibrium is $
