Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 12, 2024

Question # 6 The MPC for a closed economy is 0.75. Autonomous consumption is $500, investment is $300, and government spending is $400. a) What

Question # 6

The MPC for a closed economy is 0.75. Autonomous consumption is $500, investment is $300, and government spending is $400.

a) What is the equilibrium level of real GDP?

b) If a business increases planned investment expenditure by 300 to 400, what is the new equilibrium

real GDP?

c) What is the slope of the AE function in this economy and the multiplier value?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Recommended Textbook for

Accounting

Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,

Volume 1, 2nd canadian Edition

176509739, 978-0176509736, 978-0176509743

Students also viewed these Economics questions

Question

★★★★★

What is the purpose of the ISDA Master Agreement? How does it provide for a means of reducing credit risk?

Answered: 1 week ago

Question

★★★★★

Would your opinion change if the advertisers were more obvious in their campaignssuch as admitting after each skit that the raving fans were really actors

Answered: 1 week ago

Question

★★★★★

To what extent do you believe that insight, or making the unconscious conscious, is essential to overcoming psychological problems?

Answered: 1 week ago

Question

★★★★★

Catherine Creteau and her husband contracted with a travel agency, Liberty Travel, Inc., to arrange a trip to Jamaica. While staying in Jamaica in accommodations arranged by Liberty Travel, they were...

Answered: 1 week ago

Question

★★★★★

Accountants generally follow the lower of cost or market (LCM) basis of inventory valuations. a. Define cost as applied to the valuation of inventories b. Define market as applied to the valuation of...

Answered: 1 week ago

Question

★★★★★

On 1 January 2017, Doggle had an opening debit balance of 12,000 on its tax account, which represented the amount underprovided in respect of its previous years liability. Doggle had a credit balance...

Answered: 1 week ago

Question

★★★★★

1) An organisation has the following contribution function: Contribution = 5X + 10Y where X = the number of units of product X produced, and Y = the number of units of product Y produced. A graph has...

Answered: 1 week ago

Question

★★★★★

Case Study: If Only I Had Known A few months ago, Maria Turks, manager of client care at Willowpark Retirement Centre, was asked to review a job description for caregiver as 25 people in this job...

Answered: 1 week ago

Question

★★★★★

(LO3, 4, 6) Exercises 4-24 Indirect cost rates and the death spiral Famous Flange Company manufactures a variety of special flanges for numerous customers. Annual capacity-related (manufacturing...

Answered: 1 week ago

Question

★★★★★

Page No. Date (6) On 30 september 2014, Razor's closing inventory was counted and valved at its cast of Tas I million inventory which had cost demaged Some item T2s 210,000 Gad been in a flood Con is...

Answered: 1 week ago

Question

★★★★★

12 SC 301 student is comparing between two stocks to invest in: Stock A and Stock B. owing are the stock returns (in dollars) in the last 10 months (sample). Monthly Returns Stock A Stock B 585 960...

Answered: 1 week ago

Question

★★★★★

Which of the following terms describes the time required to prepare a machine to make a particular item. Multiple Choice Cycle time Setup time Flow time Efficiency Run time

Answered: 1 week ago

Previous Question Next Question