Why can’t an economy with a MPC greater than one reach a stable equilibrium in the aggregate expenditure model?

An increase in the marginal propensity to consume will make the spending multiplier ? An increase in taxes as a portion of income will make the spending mitltiplier

If the level of autonomous expenditures in the economy is $640 b, and the mpe = .8, what is the equilibrium level of GDP? 2

If the marginal propensity to consume is 0.90,  what is the marginal propensity to save?

When the level of income is $1200 billion and $1100 billion is devoted to consumption what would be the average propensity to consume?

Please answer the following questions based on the given information: a = 50, MPC -0.8, 1-100, G-200, EX-100, IM- 50 (where a is the autonomous spending. MPC is the marginal propensity to consume, I is the investment, G is the government spending, EX is the export, and IM is the import) 1) What is the equilibrium level of output (income), Ye, in this economy? 50 Agg Expenditure C+I+G+NX- M+I+G+NX p Agg Expenditure Income (Real GOP) 2) Suppose the Ye (actual GDP) that you derived from the previous question is lower than the potential GDP level. Calculate the G' value to find how much the government spending is required to reach the potential GDP at 2,400? G 48 degree P" => ↑ C++G+Nxx Aus GDP AET-CH-GNX AEZ-C+I+G+NX Y, GDP)

The multiplier model: Consumption spending refers to ________ spending on goods and services.

Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between consumption spending and The slope of the consumption function is the Changes in consumption can be predicted by multiplying the change in by the If the MPC = 0.80 and disposable income increases by $1000, then consumption will increase by what amount? Assume that there is no multiplier effect.

Calculate investment expenditure from the following data about an economy which in equilibrium: National income =$1000 Marginal propensity to save=$0.25 Autonomous consumption expenditure=$200

For the following problem, assume that the MPC, b, takes into account how much consumers spend as  total income (Y) in the economy is changes.  (Also: Hint GDP = Total Y) So we can rewrite our consumption function as :C= a +bYAssume:a= $2900 billionb=.75GDP= $9,000 billion.A) What is C=B) What is S=C)  If consumers were the only ones buying goods in the economy, would the economy have an excess supply of goods, excess demand of goods or would the economy be at equilibrium ?