Given that the MPS in an economy is equal to 0.25, the multiplier is equal to (Round your answer to two decimal places) Now assume that autonomous real consumption spending is $1 trillion. There is no other autonomous spending presently taking place in the economy. The current real GDP is $ trillion. What is the current amount of real consumption in the economy? $ trillion. (Round your answer to two decimal places)
Q: Roadside Markets has a 7.0 percent coupon bond outstanding that matures in 20 years. The bond pays…
A:
Q: Are there certain small businesses (or industries) that would not benefit from going global?…
A: The benefits of focusing on local markets are undeniable. The networks there actually support the…
Q: QUESTION 1B. Continuing with the inverse demand, P = 50 - Q, if each firm has a marginal cost of 0,…
A: Cournot competition is an economic model used to describe an industry structure in which companies…
Q: A firm gives electricity to the neighborhood. The firm buys two inputs: green energy (G) and fossil…
A: Given The production function of electricity: Q(G,F)=4(G+F) Where G: Green energy and F: Fossile…
Q: A sailing regatta hosted by Royal Yacht Club initially had 40 participants sign up which generated…
A: Given When 40 participants sign up then the money earned is $350 and when the number of…
Q: For part B, blank options: a. does/ does not b. equal to/ larger than/ smaller than For part C,…
A: Vaccination is an example of positive externality. Positive Externality in case of public goods:…
Q: If the purpose of a tax is to decrease the amount of a harmful activity, then the tax would be most…
A: Supply and demand both are affected by the imposition of tax. The imposition of tax changes the…
Q: It is possible for everyone to enjoy a comparative advantage in a task of their choosing. Why?
A: The theory of absolute advantage was developed by Adam Smith in The Wealth of Countries to represent…
Q: When the article said that Bird was making 19% gross margin profit, this is O A. Accounting profit…
A: Introduction Net profit is the difference between revenue and cost. Gross profit margin is a…
Q: Question 19 Shifts in demand O always lead to increases in equilibrium price. O lead to price and…
A: Demand curve is the graphical representation of demand schedule. Demand schedule is the tabular…
Q: Explain how each of this will affect the consumption and saving schedules (as they relate to GDP) or…
A: Consumption and saving structure are two pieces of an individual's disposable income/cash. The…
Q: According to the EMH, it is impossible to consistently get a non-zero alpha O True False
A: According to the efficient market hypothesis (EMH) the market price depicts best forecast that…
Q: Explain the two approaches that can be used to compute GDP. Why do these two approaches lead to the…
A: Introduction Gross Domestic Product or GDP is referred to as the total monetary value of all the…
Q: 2. The marginal opportunity cost of the second unit of pizza is:
A: Opportunity cost is the benefit that is lost when a different option is chosen. You must balance the…
Q: In the long run, what happens to consumption, investment, and the interest rate when the government…
A: A closed economy alludes to a country that delivers its own labor and products and doesn't partake…
Q: country can only produce either 5 units, 10 units or 15 units. The total production of the two…
A: The Nash equilibrium is a decision-making theorem within game theory that states a player can…
Q: What is the rate of return when 12 shares of Stock A, purchased for $22/share, are sold for $465?…
A: Introduction: The rate of return can be calculated by dividing the profit by the total cost. Here,…
Q: e analysis for the market for loanable funds diagram to illustrate and explain how the following…
A: The market for loanable funds are defined as intersection of demand for loanable funds and supply of…
Q: Which of the following central-bank actions would be less effective in raising the money supply when…
A: Central bank uses bank rate, repo rate, reverse repo rate, discount rate, etc to make changes in the…
Q: For the Income-Consumption Line & Engel Curve: (kindly place Good A on the X-axis & Good B on the…
A: Here we are given the budget of the consumers which includes the price of 2 goods and consumer's…
Q: What is the present equivalent of a uniform series of quarterly payments of $4,500 each for 7 years…
A: The rate of interest compounded bi-monthly states that the interest will be compounded every two…
Q: Supply curves tend to be more ______ the greater the time period facing the producer. A) Price…
A: The supply curve depicts the positive relationship between price and quantity supplied, keeping…
Q: Because of the adverse selection problem, Select one: a good credit risks are more likely to seek…
A: In economics the adverse selection arises when in a negotiation one party owns the relevant…
Q: a. If GDP is $800 and government spending is G₁, the size of Motak's budget deficit is $ b. If…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts question…
Q: Raman noodles are an inferior good. If all consumer's incomes decrease, then the ____ curve shifts…
A: Inferior good are those goods which has negative relationship between the income of the consumer and…
Q: Consider an economy described by the following equations: Y=C + I +G Y=7,000 G=4000 T=2,000…
A: Given, GDP Equation: Y=C+I+G where, GDP: Y=7000 Government Expenditure: G=4000 Taxes: T=2000…
Q: If the government's budget changes to a surplus of $2.0 trillion, the real interest rate is _______…
A: If the government's budget changes to a surplus of $2.0 trillion, the real interest rate is…
Q: What is a producer surplus? Describe how it is illustrated on a supply and demand diagram?
A: The demand and supply examination centers around the demand for a product or administration and…
Q: The government might be encouraged to finance its debt through seigniorage because: a. printing…
A: Seigniorage refers to the difference between the cost of producing a unit of currency and its market…
Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…
A: Cash flow is the net balance of money coming into and going out of a firm at a particular moment in…
Q: Consider an economy described by the following equations: Y=C + I +G Y=7,000 G=4000 T=2,000…
A: INTRODUCTION An economy that doesn't take part in international trade (which means no exports or…
Q: 1. What notation do we use for the backwards-induction outcome?
A: Since John von Neumann and Oskar Morgenstern released their book Theory of Games and Economic…
Q: Describe OR make two columns showing 3 benefits and 3 costs of damming rivers. What are the costs…
A: Water is the most essential part of substance for any kind of life in the world. It is not evenly…
Q: A recent government study reported that a college degree is worth an extra $35947 per quarter income…
A:
Q: An energy efficient machine costs $300,000. today and has a life of 5 years. At the end of the five…
A:
Q: Assistance with the following a. Consider an economy described by the following equations: Calculate…
A: Given values: Y=C + I + G Y=7,000 G=4,000 T=2,000 C=150+0.75(Y−T) I = 1,000 - 50r
Q: What are fixed factors of productions? Explain with example
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 5) Which of the following statements is not true about utility? We can compare utility across…
A: Consumer Decision-Making: Microeconomics places great significance on consumer decision-making.…
Q: Consider an economy described by the following equations: Y=C + I +G Y=7,000 G=4000 T=2,000…
A: Here we are given various components of the demand function using that we will find the equilibrium…
Q: The price of steel, which is used to make paper clips, has increased. The increased price of steel…
A: Leftward shift in supply curve = Decrease in supply. Rightward shift in supply curve = Increase in…
Q: An insured is injured while robbing a bank. If the insured's Accident and Health policy contains an…
A: We know that, The person who obtains insurance on his own possessions. It is the insured's…
Q: As part of a market research project, you survey six random people to see how much gas per week they…
A: We show that quantity of demannded six random people per week given below
Q: With the same inverse demand function p = 50 - Q in a Cournot duopoly, what are the equilibrium…
A: Demand function can be expressed mathematically as a relationship between the quality of the…
Q: Using game theory, explain why a park in a neighborhood with many long time residents is usually…
A: Game theory usually helps in analyse how the individuals react in certain situations, given the…
Q: Consider a position consisting of a K200,000 investment in Asset A and a K300,000 investment in…
A: Value at Risk (VaR) refers to a financial metric that provides an estimation on the risk for an…
Q: In the Keynesian IS-LM model, holding all other things constant, an increase in government spending…
A: Keynesian Model A Keynesian macroeconomic model is represented graphically by the IS-LM model.…
Q: Now suppose the G rises by 1,000. Y=C + I +G Y=7,000 G=4000 T=2,000 C=150+0.75(Y-T) I=1,000-50r…
A: Given Information Y = 7,000G = 4,000 T = 2,000 C = 150 + 0.75(Y −T ) I = 1,000 − 50rGiven that : G…
Q: iven the following on a closed economy , determine the following. The equilibrium level of…
A: The above question is based on the concept of national income accounting where we have to calculate…
Q: Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is…
A: Introduction Average fixed costs a total fixed costs per unit of output. It is total fixed costs…
Q: In the graph you've just made, what is the level of private saving when the government has a $1…
A: Private savings is that amount of income which is left for consumption after taxes. Private savings…
34
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose the marginal propensity to consume (MPC) is either 0.75, 0.96, or 0.62. a. For each value of the MPC, calculate the impact of a one-dollar decrease in taxes on GDP. Instructions: Enter your responses rounded to one decimal place. MPC Impact of a one-dollar decrease in taxes 0.75 0.96 0.62 b. For each value of the MPC, calculate the impact on GDP of a $250 million decrease in taxes. Instructions: Enter your responses rounded to one decimal place. MPC Impact on GDP 0.75 $ 0.96 $ 0.62 $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Consider an economy of a nation that has the following aggregate expenditure. 1300- 1040- 780- 520- AE 260 Y = AE 260 390 520 650 780 9ło 1040 1170 1300 130 Real GDP Note: Please make sure your final answers are accurate to 2 decimal places. a) What is the value of the equilibrium national real GDP? Equilibrium = $0 b) What is the value of the multiplier? Multiplier = 0 c) If the autonomous consumption were to decrease by $520, what would be the new value of equilibrium real GDP? New equilibrium = S0 Aggregate expenditures5:06 A & & & P M Page 4 of 5 QUESTION 4 The figure below shows the planned Aggregate Expenditure function for a hypothetical economy (AEp = 1,000 + 0.5 * Y). In this economy, taxes and transfers are equal to zero, so YD =Y. What is the value of unplanned investment expenditure (Iµ) when GDP = 3,000? Suppose that, next period, autonomous consumption increased by 100 and every thing else remained the same. Under these new circumstances, what would the value of unplanned investment be when GDP = 3,000? 5,000 4, 500 4, 000 3, 500 3,000 AEp = 1,000 + 0.5*Y 2, 500 2000 1, 500 1,a00 500 500 1,000 1, 500 2,000 2 500 3,000 3,500 4,000 4,500 5,000 REAL GDP Page 5 of 5 QUESTION A5 a. Suppose that some kind of significant economic event has occurred, and you learn that the event will de finitely cause the aggregate price level to decrease, but that its effect on short-run equilibrium real GDP cannot be determined without knowing the exact PLANNED AGGREGATE EXPENDITURE
- Given an economy is currently producing at $1.2T rGDP, natural rGDP is $1.3T, and the MPC is 0.9, then the multiplier for increases in aggregate expenditures is: 10 A (whole number, no decimals). This means the federal government should increase its expenditures by A (whole number) billion dollars.Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and consumption increases to 677 Trillion. What will the marginal propensity to consume be? .75 .8566 1.8 .8 None of the above Using the information and the calculations from question seven what will the multiplier be 9 4 5 3 None of the above Using the information and the calculations from questions seven and eight and given a full employment level of aggregate expenditure GDP of 600 and a current level of aggregate expenditure of 560 how much would government spending have to change to regain the full employment level of GDP Increase in government spending of 8 Decrease in government spending of 8 Increase in government spending of 10 Decrease in government spending of 10 None of the above Using the information and calculations form questions seven, eight, and nine how much would government taxes have to change by in order to regain the full employment level of…Given an economy is currently producing at $1.47 GDP, natural rGDP is $1.67, and the MPC is 0.94, then the multiplier for increases in aggregate expenditures is: A (round to ane decimal point). This means the federal government should increase its expenditures by A (whole number) billion dollars.
- Aggregate Expenditures and Multipliers Assignment a. Using the aggregate expenditure function above, what is the current level of real GDP? b. Using the aggregate expenditure function above, what would be the level of real GDP if the aggregate expenditure function shifted up by $0.2T? c. If Investment expenditures increase by $300B and MPC is equal to 0.90, what will be the increase in real GDP? d. If Government expenditures increase by $800B and MPS is equal to 0.05, what will be the increase in real GDP?Calculate the net cumulative change in the aggregate expenditure if taxes were cut by $200 billion and MPC is estimated to be .75. What if government expenditure was increased by $200 billion?You are given the following information about a closed economy with no government:Consumption = 115 + 0.6YInvestment = 550Use the above information to answer the questions that follow:Q.4.1 Calculate the value of autonomous spending. (3)Q.4.2 Calculate the value of the multiplier. (3)Q.4.3 Calculate the equilibrium level of income. (3)Q.4.4 Is the equilibrium level of income also the full employment level of income? Explainyour answer.(3)Q.4.5 Identify any three non‐income determinants of consumption. (3)