Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 28, Problem 6SPA
To determine
Identify the multiplier and change in real GDP.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Japan increases investment by 12 billion. The magnitude of multiplier is 6. Calculate MPC.
An Economy has no imports or taxes, the MPC is 0.90 and real GDP is $12 trillion. If businesses increase investment by $0.1 trillion:
1. Calculate the multiplier?
2. Calculate the change in real GDP?
3. Calculate the new level of real GDP?
The multiplier in the economy is 8.5 and the change in income is $3200 million
What would be the change in investment
Chapter 28 Solutions
Macroeconomics
Ch. 28.1 - Prob. 1RQCh. 28.1 - Prob. 2RQCh. 28.1 - Prob. 3RQCh. 28.2 - Prob. 1RQCh. 28.2 - Prob. 2RQCh. 28.2 - Prob. 3RQCh. 28.2 - Prob. 4RQCh. 28.3 - Prob. 1RQCh. 28.3 - Prob. 2RQCh. 28.3 - Prob. 3RQ
Ch. 28.4 - Prob. 1RQCh. 28.4 - Prob. 2RQCh. 28.4 - Prob. 3RQCh. 28.4 - Prob. 4RQCh. 28 - Prob. 1SPACh. 28 - Prob. 2SPACh. 28 - Prob. 3SPACh. 28 - Prob. 4SPACh. 28 - Prob. 5SPACh. 28 - Prob. 6SPACh. 28 - Prob. 7SPACh. 28 - Prob. 8SPACh. 28 - Prob. 9SPACh. 28 - Prob. 10SPACh. 28 - Prob. 11SPACh. 28 - Prob. 12SPACh. 28 - Prob. 13SPACh. 28 - Prob. 14SPACh. 28 - Prob. 15APACh. 28 - Prob. 16APACh. 28 - Prob. 17APACh. 28 - Prob. 18APACh. 28 - Prob. 19APACh. 28 - Prob. 20APACh. 28 - Prob. 21APACh. 28 - Prob. 22APACh. 28 - Prob. 23APACh. 28 - Prob. 24APACh. 28 - Prob. 25APACh. 28 - Prob. 26APACh. 28 - Prob. 27APACh. 28 - Prob. 28APACh. 28 - Prob. 29APACh. 28 - Prob. 30APACh. 28 - Prob. 31APACh. 28 - Prob. 32APACh. 28 - Prob. 33APACh. 28 - Prob. 34APA
Knowledge Booster
Similar questions
- If in an economy MPC is 0.8 and investment increase by $10 billion. Calculate the increase in income.arrow_forwardFind the value of change in investment if the value of multiplier is 5 and the change in national income is $1000 millionarrow_forwardCalculate MPC when a change in investment spending of 40 million leads to an increase in real GDP by 160 million.arrow_forward
- In an economy, income rises by $10,000 as a result of rise in investment Expenditure by $1000. Calculate (A) Investment multiplier (b) MPCarrow_forwardIf takes are decreased by $200 billion, given an MPC of.6, calculate the change in GDP. Give your answer in billions.arrow_forwardAggregate expenditure is 790. Income is 730 and consumption is 720, income increases to 750 and consumption increases to 736. There is an increase in consumer spending of 3. What will the MPC be What will the MPS be What will the multiplier be What will the new level of aggregate expenditure be You must show all work you must take all steps and it must be done in a neat well organized easy to follow manner.arrow_forward
- An economy has a fixed price level, no imports and no income taxes. MPC is 0.75 and real GDP is $150 billion. Government increases expenditures by $5 billion. Calculate the: Multiplier and interpret the meaning of the multiplier. Change in real GDP and new level of real GDP.arrow_forwardIf in an economy MPC is 0.8 and investment increase by $5 billion. How much there is an increase in income.arrow_forwardSuppose 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.arrow_forward
- If the multiplier in an economy is 5, a $20 billion increase in net exports will. make sure the answer is accurate.Group of answer choices decrease GDP by $100 billion. increase GDP by $20 billion. increase GDP by $100 billion. reduce GDP by $4 billion.arrow_forwardIf GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP? New GDP is $ billion.arrow_forwardAn increase of $100 million in investment leads to a rise of $500 million in national income. Find the value of multiplierarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning