economics questions
Assume that a macroeconomy is described by the following behavioral equations C = 200 + 0.8YD I = 120 G = 140 T = 100 where his the disposable income. Q: What is the income multiplier for changes in I- '? Answer: Suppose the consumption equation is represented by the following: C = 250 + 0.75YD. Given this information, the marginal propensity to save is Select one: Q a. 0.25 O b. 1.25 O c. 1 Q d. 4 0 e. 0,75 According to the model studied in class, an increase in the desire to save by households will cause: Select one: Q a. none of the options available is correct. b. a reduction in output c. no change in investment and no change in output d. an increase in output e. a reduction in investment OOOO Assume that a macroeconomy is described by the following behavioral equations C = 160+ 061'?) I = 150 G = 150 T = 100 where YD is the disposable income. Q: What is the GDP of this economy? Answer: Using the information in this week's content, label the following statement as true or false: The equilibrium condition for the goods market states that consumption is smaller than output Select one: 0 True 0 False CHOOSE ALL THAT APPLY: Suppose the marginal propensity to consume equals 0.8 (i.e., c1 = 0.8). Given this information, which of the following events will cause the largest increase in output? Select one or more: 3. Taxes, T, decrease by 200 b. Public spending, G, increases by 200 c. real GDP was larger than nominal GDP from 2002 to 2008 Public spending, G, increases by 150 C] d. Investment, I, increases by 150 Select all that apply: The marginal propensity to consume represents: Select one: 0a. the change in consumption caused by a one-unit change in disposable income. 0 b. the ratio of total consumption to disposable income. 0 c. total income minus total taxes 0 d. none of the other available alternatives is correct. 0 e. the level of consumption that occurs if disposable income is zero