Potential GDP C+1+G+X-IM) ,00 5,000 6,000 Real GDP (billions of dollars per year) In Figure 11-1, the slope of the expenditures schedule is 0.75, and the govermment wishes to achieve full employment. It should O cut spending by 1,000. increase spending by 250. cut taxes by 1,000. cut taxes by 250. increase spending by 1,000. Real Expenditure

Please answer letter D and E only.

1.The spending multiplier effect becomes bigger if a. the MPC becomes bigger and the MPM becomes smaller b. both the MPC and the MPM become bigger c. both the MPC and the MPM become smaller d. the MPC becomes smaller and the MPM becomes bigger 2. "The U.S. Department of Commerce has estimated that if U.S. manufacturers use metric measures, their increased ability to compete on world markets should increase exports by about $600 million and thus benefit the U.S. economy by between $1.2 billion and $1.8 billion." These numbers suggest that a. exports have a much smaller multiplier impact than other kinds of spending. b. the export spending multiplier is between 2 and 3. c. it takes between $1.2 and $1.8 billion increase in income to generate a $600 million increase in exports. d. imports should increase by between $1.2 and $1.8 billion. 3. The functions of the Federal Reserve System include all of the following, except: a.controlling the money supply b. promoting the stability of the…

d H-50 Home BIU ab Insert Page Layout Online class3 (1).docx - Microsoft Word 10 abc X₂ x Aa A A Font References Mailings Review View CM 24 Paragraph Picture Tools Format AaBbCcDdi AaBbCc AaBbCc Emphasis Heading 1 Heading 2 Styles 10 CA A Change Editing Styles EXERCISES FOR CHAPTER 6 Exercise 6.1 Suppose that in an economy with no government the aggregate expenditure function is: AE = 50+0.75Y. (a) Draw a diagram showing the aggregate expenditure function, and indicate the level of planned expenditure when income is 150. (b) In this same diagram, show what would happen to aggregate expenditure if income increased to 200. (c) What are the levels of autonomous expenditure and induced expenditure at income levels of 150 and 200. (d) In this same diagram show what would happen if autonomous expenditure increased by 20. Exercise 6.2 Suppose the media predicts a deep and persistent economic recession. Households expect their future income and employment prospects to fall. They cut back on…

QUESTION 7 Refer to the diagram. If the full-employment level of GDP is B and aggregate expenditures are at AE3, the: AE, AE, AE, e of k GDP O recessionary expenditure gap is BC. O recessionary expenditure gap is ed. O recessionary expenditure gap is AB. inflationary expenditure gap is BC. O inflationary expenditure gap is ed. Aggregate Expenditures

An economy has a fixed price level, no imports, and no income taxes. MPC is 0.9, and real GDP is $200 billion. Businesses increase investment by $10 billion. Calculate the new level of real GDP and explain why real GDP increases by more than $10 billion. *** The new level of real GDP is $100 billion. Real GDP increases by more than $10 billion because the increase in investment OA. enables firms to produce more output B. increases exports C. induces an increase in consumption expenditure D. increases the marginal propensity to consume

Suppose that the level GDP increased by $100 billion in a private closed economy where the marignal propensity to consume is 0.8. Aggregate expenditures must have increased by   A. 20 billion b. 100 billion c. 80 billion d. 10 billion

please anwer  ponit no:- 4, 3 and 2. (It will be nice if u answer all points)

Aggregate Expenditures (Billions) 180 160- - 140 120 100 80 60 40+ 20 BCH 180 45 $20 40 60 QUESTION 15 Pearson VUE Navi... Pearson VUE - Da... 80 100 120 140 160 180 200 Real GDP (Billions) Refer to the diagram for a private closed economy. In this economy, aggregate expenditures Odo no change as GDP increases. increase by $2 for every $5 increase in GDP. increase by $2 for every $4 increase in GDP. increase by $2 for every $3 increase in GDP. Florida Insurance:... ( Un

Figure 25-4 45 Potential GDP Real GDP In Figure 25-4, which expenditure level will result in a recessionary gap? O There will be no deflationary gap. Real Expenditures