CH8Q - 1, CH9Q - 2.

PLEASE DO ALL AREAS THAT ARE NEEDED. THERE ARE LOTS OF CELLS.

FEEDBACK WILL BE LEFT ACCORDINGLY - GERAT RESPONSE = GREAT FEEDBACK - INSTANTLY LEFT.

PLEASE DO NOT MISS ANY.

(THERE ARE 3 SECTIONS)

2. Study Questions and Problems #2 The following table shows consumption data for various levels of real disposable income. Using the numbers in the table, calculate and enter the amount of saving at each level of real disposable income. Real Disposable Income Consumption Saving ( Dollars) (Dollars) (Dollars) 100 160 200 240 300 320 400 400 500 480 Based on the numbers in the table, the value of the marginal propensity to consume (MPC) is Based on the numbers in the table, the value of the marginal propensity to save (MPS) is The break-even level of income is The expression that best describes the relationship between MPC and MPS is: O MPC + MPS 1Suppose that the level of autonomous investment in a hypothetical economy is $150 billion and that aggregate expenditures equal the sum of consumption and investment. Using the numbers in the second and third columns in the following table, calculate the unplanned inventory. Employment, Output, Consumption, and Unplanned Inventory Possible Levels of Employment Real GDP (Output) Equals Disposable Income Consumption Unplanned Inventory (Millions of workers) {Billions of dollars) (Billions of dollars) {Billions of dollars) 40 475 400 \\:i 45 5?5 475 |:| so as 550 |:| 55 775 625 |:| 60 on ma |:| 65 975 775 |:| 70 1,0?5 350 |:| The value of the marginal propensity to consume (MPC) in this table is :l , and the value of the marginal propensity to save (MP5) is :- If this economy employs a labor force of 40 million, the level of employment in the economy will be expected to V . The level of equilibrium output in this economy is :1; V billion. Suppose autonomous government spending increases by $100 billion and the value of the MPC is 0.5. Use the following table to compute four rounds of the spending multiplier effect. New Consumption Spending Round Components of Total Spending (Billions of dollars) 1 Investment Consumption LJ Consumption 4 Consumption After an infinite number of spending-output-spending rounds, the total change in real GDP resulting from the $100 billion increase in government spending is $ billion