When the price level falls     A)  the slope of the aggregate expenditures curve changes.   B)  the aggregate expenditure curve remains constant.   C)  the aggregate expenditures curve shifts down.   D)  the aggregate expenditures curve shifts up

Q: How much would the government have to change spending to close the gap?

A: There is multiplier effect occur in the economy so there is no need to send the same amount of…

Q: a) Given the following values of consumption, investment, and government purchases (all in (in…

A: Aggregate expenditure is sum of consumption expenditure, govt expenditure and investment in the…

Q: The graph models an economy in equilibrium with a real GDP of $180 billion. Suppose that consumers'…

A: Planned Aggregate Expenditure: It is defined as the planned level of finished goods and services in…

Q: The marginal propensity to consume is 0.75. What will be the initial change in consumption when?…

A: The marginal propensity to consume refers to a proportionate change in consumption due to the change…

Q: We consider following IS curve: Co+ l, + Go Y = = 1-c(1-t) 1- c(1 – t)* Show how increase in…

A: The marginal propensity to consume (MPC) is the proportion of a raise in wage that a consumer spends…

Q: Germany injects $100 into the United States by purchasing new software. If the spending multiplier…

A: The spending multiplier means initial rise in the expenditure causes multiple rise in the income…

Q: A shift will occur: O in the total expenditure function due to a change in the price level O in the…

A: There is a negative relationship between the quantity and its price. If the price rises, then…

Q: Suppose the government increases expenditures by $50 billion and the marginal propensity to consume…

A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. So, AD =…

Q: Monica's current income went up from $100.000 to $105,000 and she increased her current

A: Given that, Monica's current income went up from $100,000 to $105,000  Her change in income =…

Q: Consider that the macroeconomy is hit by aftershocks. Exports decrease by $40 billion and imports…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

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: 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: 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: 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: The table shows real GDP, Y, the components of planned expenditure, and aggregate planned…

A: Computing MPC; Marginal propensity to consume (MPC) is the change in consumption in response to a…

Q: Calculate the value of income if consumption is $440 and the average propensity to consume Is 0.88

A: The given information is:- Consumption by household = $440 APC = 0.88 We have to calculate the value…

Q: Calculate the total change in aggregate spending if investment decreases by $250 billion and the…

A: We are given:-- Reduction in investment= $250 billion MPC= 0.9

Q: 1) If investment spending depends on GDP, this is called induced investment? T/F 2) A change in…

A: When a good is manufactured with the use of factors of production, cost  takes place for producing…

Q: Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian…

A: An economy is supposed to be at its balance level of pay when total inventory and total interest…

Q: An example of fiscal policy is: A) decrease in the exchange rate OB) decrease in the price level C)…

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

Q: The ________ illustrates the relationship between the price level and the quantity of planned…

A: a) aggregate demand curvethe aggregate demand (AD) curve is a curve representing the relationship of…

Q: What happens if there is a rise in the marginal propensity to consume (MPC) a) Lowers the value of…

A: In an economy, any change in the proportion of consumption from the given income has a multiplier…

Q: he marginal propensity to consume (mpc) is 0.8. In addition, government spending increases by $200…

A: The marginal propensity to consume is 0.8=> MPC =…

Q: As shown in Exhibit 8-2, the marginal propensity to consume (MPC) is:

A: Consumption function can be written as -  C=a+bY, where a = autonomous consumption and b = MPC =…

Q: As you know equilibrium occurs where Y = AE. That is, where aggregate output equals planned…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: In an economy investment expenditure increased by 20 billion and the marginal propensity to consume…

A: As per the question, Increase in investment expenditure = 20 billion MPC or marginal propensity to…

Q: The marginal propensity to consume for this economy is …………. if income rises from $9000 to $10000…

A: In economics, the consumption function describes the relationship between consumer spending and the…

Q: d) What is the value of unplanned changes in the inventory investment when real GDP is $4000? e)…

A: Their autonomous consumption is $700, and the marginal propensity to consume is 0.8, and Net taxes…

Q: Calculate marginal propensity to consume from the following Equilibrium income $350 Consumption…

A: According to question we are given that consumption expenditure at zero income =$20 investment =$50…

Q: If the recessionary gap is $ 200 billion and the multiplier is 2, what is the increase in aggregate…

A: Macroeconomics analyzes aggregate changes and large-scale economic dynamics in areas like inflation,…

Q: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an…

A: A ‘short-run equilibrium’ is the term rise from "economic equilibrium" refers to a situation in…

Q: The marginal propensity to consume is typically   a. between -1.0 and 1.0   b. between zero and…

A: Marginal propensity to consume refers to the increase in consumption with a dollar increase in…

Q: each of the following cases, calculate the values of MPC, decimal places. PW, and the spending…

A: In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate…

Q: In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter…

A: MPC measures the change in consumption due to a change in income.  MPC stands for marginal…

Q: The graph gives an economy's AE curve when the economy is in long-run equilibrium. Equilibrium…

A: Aggregate expenditure refers to the total amount of spending in an economy over a specific period,…

Q: Equilibrium expenditure occurs where

A: Equilibrium expenditure:  The equilibrium expenditure is the level of  aggregate expenditure, it…

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: 37. If the equilibrium level of GDP is $30,000, using the equations for C, I, G, and NX shown above,…

A: Here, given information is: C=4,000+0.5Y I=1,500 G=2,250 NX=-150 To find: the value of marginal…

Q: Marginal propensity to consume (mpc = c = AC/AY): the change in consumption expendi- ture caused by…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…