Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 31.7, Problem 1QQ
To determine
MPC.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Disposable income ________ when ________.
a.decreases; taxes increase
b.decreases; transfer payments increase
c.increases; government expenditures decrease
d.decreases; aggregate income increases
a. Suppose nominal GDP of a small economy
in 2012 was $43 billion, the nominal GDP in
2018 was $96 billion, and the 2012 and 2018
consumer price indexes were 100 and 180,
respectively. Therefore, between 2012 and
2018 the real GDP (in 2012 prices) increased
by --
Show how you have derived your answer.
b. The value of MPC in an economy is 0.76.
The economy's investment expenditure (1)
drops from $580 billion to $415 billion. As a
result, the economy's aggregate income (Y)
will change by
percent.
Show how
you have found your answer.
Aggregate income in an economy in 2017 is
$ 995
billion. Saving is
$ 25
billion and imports are
$ 30
billion.
What is aggregate expenditure in the economy in 2017?
Aggregate expenditure in the economy in 2017 is ______.
A.
$ 995
billion
B.
$ 1020
billion
C.
$ 1050
billion
D.
$ 970
billion.
Chapter 31 Solutions
Economics (Irwin Economics)
Ch. 31.2 - Prob. 1QQCh. 31.2 - Prob. 2QQCh. 31.2 - Prob. 3QQCh. 31.2 - Prob. 4QQCh. 31.7 - Prob. 1QQCh. 31.7 - Prob. 2QQCh. 31.7 - Prob. 3QQCh. 31.7 - Prob. 4QQCh. 31 - Prob. 1DQCh. 31 - Prob. 2DQ
Ch. 31 - Prob. 3DQCh. 31 - Prob. 4DQCh. 31 - Prob. 5DQCh. 31 - Prob. 6DQCh. 31 - Prob. 7DQCh. 31 - Prob. 8DQCh. 31 - Prob. 1RQCh. 31 - Prob. 2RQCh. 31 - Prob. 3RQCh. 31 - Prob. 4RQCh. 31 - Prob. 5RQCh. 31 - Prob. 6RQCh. 31 - Prob. 7RQCh. 31 - Prob. 8RQCh. 31 - Prob. 9RQCh. 31 - Prob. 1PCh. 31 - Prob. 2PCh. 31 - Prob. 3PCh. 31 - Prob. 4PCh. 31 - Prob. 5PCh. 31 - Prob. 6PCh. 31 - Prob. 7PCh. 31 - Prob. 8PCh. 31 - Prob. 9PCh. 31 - Prob. 10P
Knowledge Booster
Similar questions
- Typed plz and asaparrow_forwardThe aggregate expenditure function in a simple macroeconomic model with a close economy and no government is the sum of a. Wished for consumption and wished for investment b. Saving as well as the intended investment c. Expenditure and disposable income d.arrow_forwardpotiental output is $2500 if that important im not sure. and for current gdp i got 3000 | = 125; G = 75; X = 20; M = 30; a = 110; mpc = .9 4. What would the level of government spending have to be in order for GDP to be at the full employment level?arrow_forward
- Suppose that taxes on households are 10, and the government deficit is 5. Pre-tax household income is 90, and private saving is 10. Investment is 10. Calculate GDP. Show your calculations.arrow_forwardc Suppose the real GDP in an economy is currently $320 billion, C is $160 billion, I is $50 billion, G is $32 billion, and Nx is $-20 billion. What can you say about the state of equilibrium in this economy? Will its real GDP rise, fall, or stay the same? Explain.arrow_forwarda. If Ca Ca is $120, Ig is $60, X, is-$10, and Gis $40, what is the economy's equilibrium GDP?arrow_forward
- What is general government final consumption reflecting in terms of GDP of a country? What it indicates when the value is high or low?arrow_forwardSuppose GDP is $12 trillion, taxes are $3.6 trillion, private saving is $1.5 trillion, and public saving is $0.8 trillion. Assuming the economy is closed, complete the following table by calculating consumption, government purchases, national saving, and investment. Amount Component (Trillions of dollars) Consumption Government Purchases National Saving Investment Grade It Now Save & Continue Continue without savingarrow_forwardPotential GDP Select one: A. never changes. B. increases as the price level rises. C. is the level of real GDP when unemployment is zero. D. does not vary with the price level. E. increases as the quantity of money in the economy increases.arrow_forward
- 6.If the MPS is 0.60, MPC a.is 1.60. b.is 0.30 c.is 0.40 d.cannot be determinedarrow_forwardInduced Consumption is: A. that part of consumption that varies with the level of GDP B. that part of consumption that varies with nondurable goods C. that part of consumption that varies with durable goods D. that part of consumption that varies with the level of disposable incomearrow_forwardRefer to the graph above. The equilibrium level of GDP corresponds to: AP Real expenditures A. GDPO. B. GDP1. C. GDP2. D. zero. K GDPO GDP1 GDP2 Real income AEarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax