ECONOMICS Questions (3,4,6,7,8)

Question 3

Use the figure to calculate the marginal propensity to consume (MPC) between point A and point B. MPC = . (Enter your response as a real number rounded to two decimal places.) Consumption and National Income Real consumption spending ($ billions) $3,750 B $2,250 A :$3,000 :$5,000 Real national income or real GDP ($ billions)Suppose booming economies in the BRIC nations (Brazil, Russia, India, and China) causes net exports (NX) to rise by $75 billion in Canada. If the MPC is 0.75, the change in equilibrium GDP will be $ billion. (Round your response to the nearest whole number.)Between January and October of 2015, manufacturing inventories increased by $1.75 billion. Can we tell from this information whether aggregate expenditure was higher or lower than GDP for these nine months of 2015? If not, what other information would you need? Data from Statistics Canada CANSIM Table 304-0014. O A. There is not enough information to determine the relationship between aggregate expenditure and GDP. We have to know what the planned change in inventories was. O B. Aggregate expenditure was greater than GDP. O C. Aggregate expenditure was less than GDP. O D. Aggregate expenditure was equal to GDP.Suppose booming economies in the BRIC nations (Brazil, Russia, India, and China) causes net exports (NX) to rise by $50 billion in Canada. If the MPC is 0.6, the change in equilibrium GDP will be $ billion. (Round your response to the nearest whole number.)Fill in the blanks in the following table. Assume for simplicity that taxes are zero. Also assume that the values represent billions of 2007 dollars. (Round your responses to the nearest whole number.) Real GDP (Y) Consumption (C) Saving (S) $900 $450 $1,000 $500 $1, 100 $550 $1,200 $600 $1,300 $650 The marginal propensity to consume is . (Round your response to two decimal places.) The marginal propensity to save is . (Round your response to two decimal places.)