1. Suppose Google plans to produce 10.7 million Pixel phones this year. The company expects to sell 8 million. Suppose that at the end of the year, Google has sold 6.7 million Pixels. What is the level of actual inventories? Please round to the nearest one-decimal and enter as millions. For example, if your answer was 4,500,000 you would enter the number 4.5.
2. Suppose that autonomous consumption is 2,310, government purchases are 687, taxes are 0, planned investment spending is 686, net exports are -32, and the MPC is 0.7. What is the value of autonomous spending? Round your answer to the closest 2 decimal places if needed. Do not enter dollar signs ($) in your answer.
3. If MPC in an economy is 0.52 and government spending increases by 1,585, what will overall GDP increase by? Please round to two decimal places where needed.
4. If a $509 increase in autonomous investment causes a $3,020 increase in GDP, what is the MPS? Please round to two decimal places where needed.
5. Potential GDP equals $500 billion. The economy is currently producing GDP equal to $400 billion. If the MPC is 0.63, then autonomous spending must change by $_______ billion for the economy to move to potential GDP? Please round to two decimal places where needed.
6. Suppose Ford plans to produce 9.7 million trucks this year. The company expects to sell 8.4 million. Suppose that at the end of the year, Ford has sold 8.3 million trucks. What is the level of planned inventories? Please round to the nearest one-decimal and enter as millions. For example, if your answer was 4,500,000 you would enter the number 4.5.
7. An economy sees consumption increase by $2,412 million when disposable income increases by $4,203 million. Assuming the marginal propensity to consume remains constant, what is the marginal propensity to save? Please round to the closest two decimal places.
8. If the MPC is equal to 0.59, then a $5,785 increase in disposable income will increase savings by what amount? Please round to two decimal places if needed.
9. When disposable income increases from $5,414 to $7,194, consumption increases from $3,259 to $4,032, what is the value of the MPC? Please round to two decimal places if needed.
10. When disposable income increases from $8,124 to $9,518, consumption increases from $5,165 to $5,881, what is the value of the MPS? Please round to two decimal places if needed.