An economy has no imports and no income taxes, MPC is 0.9, and real GDP is $200 billion. Businesses increase investment by $10 billion. Calculate the multiplier and the change in real GDP. The multiplier is . The change in real GDP is $ billion.
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- If GDP is 3,900, the multiplier is 8, and G falls by 10, what is the new level of GDP? New GDP is $ billion.Aggregate 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.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.
- If GDP is $3,400 billion, the multiplier is 5, and I rises by 15, what is the new level of GDP? The new level of GDP is $ billion.Find the value of change in investment if the value of multiplier is 5 and the change in national income is $1000 millionAn 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?
- In an economy investment increases by 120 billion. The value of multiplier is 4. Calculate MPC.Japan increases investment by 12 billion. The magnitude of multiplier is 6. Calculate MPC.The multiplier in the economy is 8.5 and the change in income is $3200 million What would be the change in investment
- Aggregate 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. ( Please specifically respond the What will the new level of aggregate expenditure be ) What will the MPC be What will the MPS be What will the multiplier be What will the new level of aggregate expenditure beWhat are the four categories of aggregate expenditure (demand)? Give an example of each. 9.1 Calculate the Marginal Propensity to Consume and the Marginal Propensity to Save. Fill in the blanks in the following table. Show that the MPC plus the MPS equals 1. National Income & Real GDP (Y) Consumption (C) Saving (S) MPC MPS $9,000 $8,000 $10,000 $8,600 $11,000 $9,200 $12,000 $9,800 $13,000 $10,400If government spends $10B and the MPC in the economy is .8. What will be the total change in GDP?