The Expenditure multiplier occurs because A. a change in autonomous expensitures changes household incomes B) a change in autonomous expensitures causes real GDP to change in the opposite dirrection C) a change in households incomes changes autonomous expensitures D) any change in real GDP must also change the price level E) goverment expenditure on goods and services change by a proportional amount to government taxes

Q: suppose the marginal propensity to consume is 0.75, the marginal propensity to import is 0.25, there…

A: Aggregate expenditure is the sum of all spending made by all sectors of the economy.  It includes…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: The market value of all commodities and services produced in the economy over a certain time period…

Q: C= R60 million   I= R280 million   Goverment= R310 million   C = 0.75     1. Calculate the…

A: 1) AE = C+c(Y) +I+G       = 60+0.75(Y) + 280+ 310        = 650 + 0.75(Y)  Here out of total…

Q: At equilibrium expenditure, unplanned change in inventories must be positive O True False

A: At equilibrium expenditure, aggregate expenditure is equal to real GDP.

Q: When the price level falls     A)  the slope of the aggregate expenditures curve changes.   B)  the…

A: Aggregate expenditure is the sum of consumption, investment, government spending and net exports.

Q: Ramey's estimate of the short-run "multiplier effect" of government purchases on GDP (i.e., dY/dG)…

A: According to Ramey, the inspection of the macroeconomic hypothesis and observational proof on the…

Q: Oesenve the graph betenen Tetal ependiture and National income Ohoce among the oing nhich choicea…

A: In the given graph, AD and AE explains the national income and total expenditure of a country.

Q: a) the equilibrium output level, b) the budget balance the trade balance c)

A: The aggregate expenditure schedule demonstrates how much an economy's total planned expenditures are…

Q: An increase of $200 million In investment leads to a rise in national income by $1000 million. Find…

A: The information given is as follows:- Change in investment = $200 million Change in national income…

Q: In the income multiplier is equal to 4, then a $25 initial increase in government spending leads to…

A: The public authority spending multiplier impact is clear when a steady increase in spending prompts…

Q: If income level of the economy is at 50, how big an increase in autonomous expenditures is necessary…

A: Here given, Income level of the economy is at 50 At equilibrium point aggregate expenditure (i.e…

Q: Specify the supply determinants of real GDP. List the factors of each category and explain in…

A: The determinants of real Gross domestic product supply are the elements that impact how much labor…

Q: Analyse the effect on equilibrium national income if the MPC falls from 0.95 to 0.4. Illustrate with…

A: National income is an income that is generated by summing the consumption, government expenditure,…

Q: Explain the difference between induced consumption expenditure and autonomous consumption…

A: Expenditure incurred by the consumers for consumption irrespective of their income is termed as…

Q: Which is considered a leakage or withdrawal of spending from the income expenditures stream?     A)…

A: Equilibrium is achieved at a point where the amount of injections is equal to the amount of…

Q: 24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total…

A: The marginal propensity to consume is a metric that quantifies induced consumption, the concept that…

Q: Referring to this table, calculate the marginal propensity to consume. Type your response Output…

A: Marginal propensity to consume is a measure of change in consumption because of change in income or…

Q: 2. a. b. Write the formulae for calculating the expenditure multiplier and the change in real Gross…

A: A detailed answer is given above.

Q: Calculate the marginal propensity to consume The marginal propensity to consume is >>> Answer to 1…

A: Aggregate planned expenditure is the sum of consumption (i.e.,C), investment (i.e., I), government…

Q: Assume autonomous consumption is Gh¢ 400 million, autonomous investment is Gh¢ 300 million and…

A: i.) Equilibrium national income: Equilibrium national income can be calculated as follows: Thus,…

Q: In the table below, state what would be the impact on the MPE and the Multiplier if there is an…

A: Marginal Propensity to earn (MPE) measures the reduction in the earned income of a consumer and is…

Q: In an economy the change in income is $6600 and change in investment is $3600 Calculate multiplier

A: The information being given is:- Change in income = $6600 Change in investment = $3600 We have to…

Q: Define the term inventories?

A: Inventories refer to the stock of goods of a firm or business.

Q: Explain how the law of diminishing marginal utility helps in deriving the demand curve. Explain how…

A: The law of diminishing marginal utility states that the value of the good which is extra utility…

Q: At equilibrium expenditure, unplanned change in inventories must be positive True False

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: YOU ARE REQUIRED TO SHOW A CALCULATION METHOD Based on the information given on a hypothetical…

A: Given: Savings (S)= -150 + 0.25Yd  Investment (I) = 100 Government Expenditure (G) = 200 Taxes (T) =…

Q: What is income-expenditure equilibrium? Derive aggregate demand curve from income expenditure…

A: Aggregate demand refers to the sum total of all individual goods and services demanded.The aggregate…

Q: Autonomous Consumption R535m Marginal propensity to consume is 0.75 Investment Spending R322m…

A: For the question asked there are certain terms given to data which are:- Government Spending=G…

Q: If the autonomous expenditure by the government increases by 7000 and the MPC is 0.2 find the level…

A:

Q: 30. Given this diagram; what is the mpc (marginal propensity to consume? a) 4/5 b) 20 c) – 20 d) 100…

A: Answer- Need to find- Given this diagram; what is the mpc (marginal propensity to consume Diagram-

Q: YAS 742 + 15P – 28Poil YAD = 478 – 45P+ 18G Suppose initially, the Poil = $93 per barrel and…

A: Answer- "Thank you for submitting the question .But, we are authorized to solve only 3 sub…

Q: How is it possible for consumption expenditure to be positive even when disposable income is…

A: Even when disposable income is zero, consumption expenditure can still be positive because…

Q: A) What is the current equilibrium level of income? B) What is the level of injections? What is the…

A: In this question:- Consumption(C) =£ 70 billions Investment(I)=£ 6 billions Government…

Q: The slope of the PE (planned expenditure) line is always 45 degrees the inverse of the spending…

A: The term "marginal propensity to consume" describes the variation in income brought on by variations…

Q: Income and consumption changes for five people are shown in the table. Given this information, rank…

A: Table -1 shows the income change and consumption change:

Q: Draft a graph which shows the law of supply and demand to explain to conditions as below: Surge in…

A: The law of demand demonstrates the negative/inverse relationship between the price of a…

Q: Assume you have the following model of the expenditure sector: AD  = C + I + G + NX         C = Co +…

A: Expenditure multiplier, which is also known as spending multiplier, refers to the ratio of change in…

Q: Explain how the following scenario affect the consumption schedule and real GDP, other things equal…

A: Rises in oil prices are expected to raise inflation and economic slowdowns. Oil prices have a…

Q: Real GDP (trillions of 2009 dollars) In the above figure the economy is initially at point A on the…

A: It is the total spending in an economy on final services and items during a specific period. When AE…

Q: The Congressional Budget Office estimates the size of the government purchases multiplier to be OA.…

A: Government purchases is the expenditure incurred by the government sector on the demand for final…

Q: YAS = 1548 + 19P – 12Poil YAD = 412 – 33P+ 26G Suppose initially, the Poil = $86 per barrel and…

A: Goods market in equilibrium when aggregate demand and aggregate supply are equal to each other at…