Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 30, Problem 3SPPA
To determine
To compute:
The missing values in the table.
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What is the marginal propensity to consume in this economy?
Planned
Government
Net Exports
Aggregate
Change in
Real GDP (Y) Consumption (C)
Investment (1') Purchases (G)
(NX)
Expenditures (AE)
Inventories
1500
1100
250
1600
1175
100
1700
1250
1800
1900
2000
75
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
0.65
0.75
0.85
d.
0.95
Consider the following economy. What is the mpc in this economy?
Planned
Government
Net Exports
Aggregate
Change in
Real GDP (Y) Consumption (C)
Investment (I') Purchases (G)
(NX)
Expenditures (AE)
Inventories
10000
8200
800
11000
9000
600
12000
9800
13000
14000
15000
800
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
0.50
b
0.75
C
0.80
d
0.90
If the government decreases taxes, disposable income
does not change.
falls.
increases.
This causes total consumer spending to
not change.
increase.
decrease.
Chapter 30 Solutions
Foundations of Economics (8th Edition)
Ch. 30 - Prob. 1SPPACh. 30 - Prob. 2SPPACh. 30 - Prob. 3SPPACh. 30 - Prob. 4SPPACh. 30 - Prob. 5SPPACh. 30 - Prob. 6SPPACh. 30 - Prob. 7SPPACh. 30 - Prob. 8SPPACh. 30 - Prob. 9SPPACh. 30 - Prob. 1IAPA
Ch. 30 - Prob. 2IAPACh. 30 - Prob. 3IAPACh. 30 - Prob. 4IAPACh. 30 - Prob. 5IAPACh. 30 - Prob. 6IAPACh. 30 - Prob. 7IAPACh. 30 - Prob. 8IAPACh. 30 - Prob. 9IAPACh. 30 - Prob. 10IAPACh. 30 - Prob. 1MCQCh. 30 - Prob. 2MCQCh. 30 - Prob. 3MCQCh. 30 - Prob. 4MCQCh. 30 - Prob. 5MCQCh. 30 - Prob. 6MCQCh. 30 - Prob. 7MCQCh. 30 - Prob. 8MCQ
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- What is the expenditure multiplier in this economy? Planned Government Net Exports Aggregate Change in Real GDP (Y) Consumption (C) Investment (ı') Purchases (G) (NX) Expenditures (AE) Inventories 10000 8200 800 11000 9000 600 12000 9800 13000 14000 15000 800 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 3 4 C d 10arrow_forwardThe following table shows data for the economy before the decrease in saving. Suppose that the decrease in saving causes consumption to rise from $280 million to $320 million. Assume Say's law holds in this economy. Fill in the data for the economy after the decrease in saving. Before Saving Decrease After Saving Decrease Consumption (C) $280 million $320 million Investment (I) $200 million $ million Government Purchases (G) $250 million $ million Exports (EX) $500 million $500 million Imports (IM) $300 million $300 million As a result of the decrease in saving, total expenditures will .arrow_forwardY= C+I+G Where C= 160 +0.6YD I = 150 G = 150 T= 100 Solve for Equilibrium GDP( Y) 5 points Disposable Income (YD) 5 points 1. 2. Consumption Spending (C) 5 points Explain the effect to the level of output if taxes (T) will be increased to 3. 4. 120.arrow_forward
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