A decrease in government purchases of $7 billion leads to an initial $5.6 billion decrease in withdrawals. a. In this case MPW is , MPC is , and the spending multiplier in this economy is Enter your responses for marginal propensitles and multiplier values rounded to 2 decimal places. b. With this change in government purchases the AD curve shifts to the left |by $ billion. Enter your response for the size of the curve shift rounded to 1 decimal place. Do not put a minus sign In your answer. C. As a result of this shift the equilibrium price level will | decrease and equilibrium real output will decreaseIn each of the following cases, calculate the values of MPC. MPW. and the spending multiplier. Enter your responses below rounded to 2 declmal places. a. A $1 million increase in income leads to a $200,000 rise in consumption on domestic items. MPC is therefore |:| , MPW is and the spending multiplier is and the spending multiplier is c. A $9 million decrease in income causes a $6.75 million drop in withdrawals. MPC is therefore spending multiplier is |:|. b. A $3 million decrease in income results in a $0.6 million drop in consumption on domestic items. MPC is therefore . MPW is ,MPW is andthe The table below shows labour force information for a hypothetical economy. Answer the following questions, writing out millions of workers to two decimal places e.g. 1.00 million and percentages to one decimal place e.g.1.0%. 2014 2015 Total population 15 years and over 3.40 million 3.40 million Those-15 years and over not in the labour force 1.10 million 1,10 million populatlon Parttime workers who wish to have fulltime jobs 85,000 110,000 J_0Pt.)asrttime workers who do not wish to have full-time 250,000 325900 Discouraged workers 335,000 435,000 Workers with fulltimejobs 0.90 million 1.00 million Unemployed members ofthe labour force 110,000 120,000 a- The labour force population in 2014 is million while the labour force is 1.35 million. The participation rate in 2014 is 58.7 '36 and the official unemployment rate is |:| 8'6. The labour force population in 2015 is million while the labour force is |:| million. The participation rate in 2015 is '36 and the ofcial unemployment rate is |:| '36. b. Between 2014 and 2015 the official unemployment rate has decreased v while the number of unemployed members of the labour force has increased v c. If the unemployment rate included underemployed and discouraged workers, the unemployment rate would be % in 2014 and % in 2015