If the MPC is 0.8 and investment increases by $3 billion, the equilibrium GDP will increase by $15 billion. increase by $2.4 billion. decrease by $3.75 billion. increase by $3.75 billion.
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If the MPC is 0.8 and investment increases by $3 billion, the equilibrium
- increase by $15 billion.
- increase by $2.4 billion.
- decrease by $3.75 billion.
- increase by $3.75 billion.
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- If the autonomous expenditure by the government increases by 7000 and the MPC is 0.2 find the level of new income in the economyIf in an economy MPC is 0.8 and investment increase by $5 billion. How much there is an increase in income.Suppose that autonomous consumplion is 50, government purchases are 125, planned investment spending is 175, net exports are - 50, and the MPC is 0.9. Equilibrium GDP is $ (Round your response to the nearost dollar.)
- If the MPC is 0.8 and investment increases by $5 billion, the equilibrium GDP will Multiple Choice increase by $25 billion. increase by $4.0 billion. decrease by $6.25 billion. increase by $6.25 billion.If the MPC in an economy is .8, government could close a recessionary expenditure gap of $200 billion by cutting taxes by?If in an economy MPC is 0.8 and investment increase by $10 billion. Calculate the increase in income.
- If the MPC is .6 and the equilibrium GDP is $30 billion below the full employment GDP, then the size of the recessionary expenditure gap is?If MPC =.6 and government purchases increases by $5 billion, GDP will increase by $3 billion $30 billion $12.5 billion $1.25 billionAssume that Equilibrium GDP is $4,000 billion. Potential GDP is $5,000 billion. The marginal propensity to consume is 4/5 (0.8). By how much and in what direction should government purchases be changed? a. increase by $1,000 billion b. increase by $100 billion c. decrease by $1,000 billion d. increase by $200 billion
- Calculate the net cumulative change in the aggregate expenditure if taxes were cut by $200 billion and MPC is estimated to be .75. What if government expenditure was increased by $200 billion?If changes to expenditures include consumption at $2000, investment at $600, government spending at $500, exports are $100, imports are $200 and the mpc is 0.75, then: the equilibrium income is $12,000 equilibrium income is $3000 the multiplier is 5 the slope of the AE curve is 0.25The MPC is 0.41 If change in consumption is $650 find the change in income
