Use the graph to answer the questions that follow. a. What is the value of the MPC? b. What is the value of the MPS? c. What is the value of the multiplier? d. What is the amount of unplanned investment at aggregate outputs of 300, 900, and 1,300? Planned aggregate expenditure, AE 1200 450 0 300 900 1,300 Aggregate output, Y AE=C+I

Use the graph to answer the questions that follow. a. What is the value of the MPC? b. What is the value of the MPS? c. What is the value of the multiplier? d. What is the amount of unplanned investment at aggregate outputs of 300, 900, and 1,300? Planned aggregate expenditure, AE 1200 450 0 300 900 1,300 Aggregate output, Y AE=C+I

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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a. What is the value of the MPC?b. WhatisthevalueoftheMPS?c. What is the value of the multiplier?d. What is the amount of unplanned investment at aggregate output of 300, 900, and 1,300?
Use the graph to answer the questions that follow. a.What is the value of the MPC?b.What is the value of the MPS?c.What is the value of the multiplier?d.What is the amount of unplanned investment at aggregateoutput of 300, 900, and 1,300?
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The following questions refer to this table: a.At each level of output, calculate saving. At each level of out-put, calculate unplanned investment (inventory change).What is likely to happen to aggregate output if the economyproduces at each of the levels indicated? What is the equilib-rium level of output?b.Over each range of income (2,000 to 2,500, 2,500 to 3,000, andso on), calculate the marginal propensity to consume. Calculatethe marginal propensity to save. What is the multiplier?c.By assuming there is no change in the level of the MPC andthe MPS and planned investment jumps by 200 and is sus-tained at that higher level, recompute the table. What is thenew equilibrium level of Y? Is this consistent with what youcompute using the multiplier?
Use the graph to answer the following questions: a)what is the value of the MPC? b)what is the value of the MPS?
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Refer to the accompanying table in answering the questions that follow: (3) Aggregate Expenditures (Ca (1) Possible Levels of Employment, Millions (2) Real Domestic Output, Billions + Ig Хр, + G), вillions 90 $450 $470 100 500 510 110 550 550 120 600 590 130 650 630 Instructions: In parts a-c, enter your answers for the multiplier as a whole number. In part c, round your answers for the MPC and MPS to 1 decimal place. a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in column 3 have to change at each level of GDP to eliminate the gap? Aggregate expenditures would have to (Click to select) ♥ by $ billion. What is the multiplier in this example? b. Will there be an inflationary expenditure gap or a recessionary expenditure gap if the full-employment level of output is $450 billion?…
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Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet Aggregate of Investment purchases Exports (G) (C) Expenditure (AE) (1) (NX) 650 85 195 90 320 690 750 145 195 90 320 750 850 205 195 90 320 810 950 265 195 90 320 870 Find the value of the multiplier in this economy? Show your calculations. Answer: Give your reasons A- в I Fr of II
Chapters 8 & 10 Asses X FAIPQLSCOCJPF-ZgZljGhgOrg9G0at6VZHrVrtveBGSlulokla hw/formResponse Because of the multiplier, a one-time change in expenditure will generate more additional real GDP than the initial change in expenditure* O True False If the consumption function lies above the 45-degree line, then saving at these levels of disposable income will be positive * O True O False The clonn of: