Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter D, Problem 9RQ
Exercise D9
What is the marginal propensity to consume, and how is it related to the marginal propensity to import?
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Part C
3. The manager of a certain gasoline station wants to forecast the demand for the unleaded gasoline next month so that the
proper number of gallons can be ordered from the distributor. The manager has accumulated the following data demand for
unleaded gasoline from sales during the past eight months.
Month
Gasoline Demanded (gallons)
Mar
900
Given that the forecast for March is 920.
Apr
755
May
650
Jun
550
Jul
625
Aug
730
Sept
820
Oct
1 100
a. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.25.
b. Compute the exponential smoothed forecast for the demand from April to November. Use a = 0.45.
c. Plot the actual demand and the forecasts determined in part a and b on the same graph and compare them.
d. Make a comparative analysis out of your answers in the plotted data. (3-5 sentences)
The value of MPS is 0.87
Find the value of MPC
What is the type of consumption of household spending which is independent
Chapter D Solutions
Principles of Economics 2e
Ch. D - Exercise D6 What is on the axes of an...Ch. D - Exercise D7 What does the 45-degree line show?Ch. D - Exercise D8 What determines the slope of a...Ch. D - Exercise D9 What is the marginal propensity to...Ch. D - Exercise D10 Why are the investment function, the...Ch. D - Exercise D11 Why does the import function slope...Ch. D - Exercise D12 What are the components on which the...Ch. D - Exercise D13 Is the equilibrium in a Keynesian...Ch. D - Exercise D14 What is an inflationary gap? A...Ch. D - Exercise D15 What is the multiplier effect?
Ch. D - Exercise D16 Why are savings, taxes, and imports...Ch. D - Exercise D17 Will an economy with a high...Ch. D - Exercise D18 How do economists use the multiplier?Ch. D - Exercise D19 What does it mean when the aggregate...Ch. D - Exercise D20 Which model, the AD/AS or the AE...Ch. D - Exercise D21 What are some reasons that the...Ch. D - Exercise D22 What should the government do to...Ch. D - Exercise D23 Two counties are in a recession....Ch. D - Exercise D24 Compare two policies: a tax cut on...Ch. D - Exercise D25 What role does government play in...Ch. D - Exercise D26 If there is a recessionary gap of 100...Ch. D - Exercise D27 What other changes in the economy can...
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Similar questions
- Exercise D15 What is the multiplier effect?arrow_forwardExercise D21 What are some reasons that the economy might be in a recession, and what is the appropriate government action to alleviate the recession?arrow_forwardExercise D27 What other changes in the economy can be evaluated using the multiplier?arrow_forward
- Exercise B9 Does a change in price both an income effect and a substitution effect? Does a change in income have income effect and a substitution effect?arrow_forwardExercise D19 What does it mean when the aggregate expenditure line crosses the 45-degrss line? In other words, how would you explain the intersection in words?arrow_forwardExercise A1 Name three kinds of graphs and briefly state when is most appropriate to use each type of graph.arrow_forward
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