Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Country X's long run full employment level of Real GDP is estimated to be $19,100,000. However, the current actual Real GDP in country X stands
Country X's long run full employment level of Real GDP is estimated to be $19,100,000. However, the current actual Real GDP in country X stands at $16,300,000.
Data also shows that in country X an average $1,000.00 increase in income results in $910.00 change in consumption.
What is the dollar value of the GDP gap?
What is country X's Marginal Propensity to Consume (MPC)
MPC has been updated and is now estimated to be 88% (0.88), calculate country X's income multiplier
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started