The value of the marginal propensity to save is 0.2. If real GDP increases by $50 billion, this situation was the result of an increase in the aggregate expenditures schedule of: a. $10 billion b. $15 billion c. $16 billion

12,996 results
  1. Microeconomics

    If the wage exceeds the value of the marginal product of labor, then hiring another worker: A. Decreases the firm’s total revenue B. Increases the firm’s profit C. Increases the firms total cost D. All of the above are correct I picked A? As a result

  2. ECON-HELP!!

    1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate? 2. The goverment raises taxes

  3. Econ

    Need help on this question, I tried the ones i know. a The consumption function is C = 1.5 + 0.75(Y-T). What is the marginal propensity to consume, MPC? What is the marginal propensity to save, MPS? ans: MPC=0.75 and MPS=1-MPC=0.25 correct? b The trade

  4. Economics

    In an economy the marginal propensity to consume is 0.90, and gross domestic product (GDP) is $100 billion. If gross private domestic investment declines by $2 billion, then GDP will

  5. Economics

    1. What effect would a decrease in consumer savings have on the aggregate demand curve? The curve would level off. The curve would shift to the right. The curve would shift to the left. The curve would not change 2. If there is an increase in aggregate

  6. Economics Macro

    Suppose that real GDP per capita in the United States is $49,000. If the long-term growth rate of real GDP per capita is 1.6% per year, how many years will it take for real GDP per capita to reach $98,000?

  7. macroeconomics

    23. The next four questions refer to the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Units of Price Year output per unit 1 16 $2 2 20 3 3 30 4 4 36 5 5 40 6 (a) If

  8. Macroeconomics* Please check my answers*

    If real GDP per capita grows at a rate of 5% per year consistently over time, how many years would it take for it to double in size? 5 10 My answer 14 70 The purpose of indexing Social Security payments to the CPI is to ______. increase corporate profits

  9. econ

    Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year? a. 10

  10. Macroeconomics

    Calculating the Rate of Growth of Per Capita Real GDP The annual rate of growth of real GDP in a developing nation is 0.3 percent. Initially, the countries' population was stable from year to year. Recently, however, a significant increase in the nation's

  11. Macroeconomics

    The money supply in Freedonia is $200 billion. Nominal GDP is $800 billion and real GDP is $400 billion. Assuming that velocity is stable, if real GDP grows by 10 percent this year, and if the money supply does not change this year, what is the change of

  12. Macro Help

    Calculating Marginal Propensity to Save and Marginal Propensity to Consume Consider the following table. For this hypothetical economy, the marginal propensity to save is constant at all levels of real GDP, and investment spending is autonomous. There is

  13. Economics

    Help The answer i got is : GDP grew 10% GDP for 2006 using 2005 as the base year increase by 20% real GDP grow? 10% If i'm right, let me know, if not, please show Calculation Thank You Use the following data to answer questions 1-3 (be sure to provide all

  14. Economics

    How is real GDP different from nominal GDP? A. Real GDP is adjusted for inflation and often appears higher than nominal GDP. B. Real GDP is adjusted for inflation and often appears lower than nominal GDP. *** C. Real GDP is not adjusted for inflation and

  15. math

    Suppose C(x) measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then the following function measures the economy's savings corresponding to an income of x billion dollars. S(x) = x - C(x) (Income

  16. Macro Consumption Question

    (Simple Spending Multiplier) For each of the following values for the MPC (marginal propensity to consume), determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease in spending: a. MPC

  17. macroeconomics

    27. The following data show nominal GDP and the appropriate price index for several years. Compute real GDP for each year and indicate whether you have “inflated” or “deflated” nominal GDP in finding real GDP. All GDP are in billions. Nominal Price

  18. economics

    the value of the marginal propensity to consume is .8. If real gdpincreases by $30 billionthis situation was the result of an increase in the aggregative expenditures schedule of?

  19. Macroeconomics

    If the GDP deflator increased by 3 percent while nominal GDP grew by 5 percent: a) real GDP would grow by 2 percent. b) real GDP would grow by 8 percent. c) real GDP would be unchanged. d) real GDP would fall by 3 percent. My attempt to get the solution:

  20. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run? a.Real GDP will fall,

  21. Economics

    21. How do fears of future economic problems affect GDP? A. Businesses will invest more money in the short term to ensure higher profits in the future; GDP will be pushed up. B. Consumers will spend more money in the short term to prevent future economic

  22. Economics

    The value of the marginal propensity to save is 0.2. If real GDP increases by $50 billion, this situation was the result of an increase in the aggregate expenditures schedule of: a. $10 billion b. $15 billion c. $16 billion d. $40 billion Take a shot.

  23. Math

    Suppose C(x) measures an economy's personal consumption expenditure and x the personal income, both in billions of dollars. Then the following function measures the economy's savings corresponding to an income of x billion dollars. S(x) = x - C(x) (Income

  24. ECON

    CAN ANYONE PLEASE HELP// 1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate? 2. The

  25. Macroeconomics

    Can someone check this for me? 1. Where in the US National Income and Product Accounts and the circular flow of expenditure and income do new home sales appear? ANSWER: I said they appear with money going from the households to the goods and services

  26. Economics

    Suppose that S(savings) = $4 billion when Real GDP = $200 billion & S(savings) = $104 billion when Real GDP = $600 billion. If Autonomous investment falls by $100 billion what would be the effect on Real GDPeqm.? Note: eqm. = equilibrium My answer is a

  27. Macroeconomics - real GDP growth

    I have graphed the real GDP growth over the years 1990-2004. I need help analyzing it! What happened when it was going down? What happened when it shot back up again? HELP! Thanks... The GDP growth rate went down considerably during the period 2000-2002,

  28. Macroeconomics

    Given the following information, convert the figure for nominal GDP (nGDP) in 2014 to its real GDP (rGDP) value in 2006 dollars. GDP2014 = $1.4 trillion CPI2014 = 110 GDP2006 = $1.0 trillion CPI2006 = 100

  29. Macroeconomics

    If the marginal propensity to consume is 2/3, and there is no investment accelerator or crowding out, what would happen to AD or AS, the price level (P) and the real GDP (Y) if government expenditures increases by $20 billion? Also show what happens

  30. Economics(Please respond)

    Given the increase in government expenditures and the marginal propensity to consume, how would you find the change in equilibrium GDP? I did the expenditures X the marginal propensity but this is wrong.

  31. Macroeconomics

    Suppose the marginal propensity to consume is 0.75. What does this mean? What do we know about the marginal propensity to save? What do we know about the average propensity to consume? The marginal propensity to consume (MPS) the percent of an additional

  32. macroeconomics

    is this a recessionary or inflationary gap. aggregate supply curve is horizontal, change in real GDP arising from a shift of the aggregate demand curve = the size of the shift of the curve. Calculate both the change in government purchases of goods and

  33. econ

    Choose the statement that correctly defines the changes in GDP due to the following transaction: Ghana exports cocoa powder to the US customers. US’s consumption increases, so US’s GDP increases. US’s consumption increases, and US’s net export

  34. ECON--HELP!?!?!

    1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate? 2. The goverment raises taxes

  35. business

    if the economy in the US is currently at the trough of a business cycle then whats the relationship between real GDP and potential GDP? Is it likely that the real GDP will stay in this relative position got a long period of time? (like 15 yrs)

  36. Economics

    Concern about international crisis has caused consumers to save their money and postpone big purchases. What is the effect on aggregate demand and aggregate supply? A. No change B. Aggregate supply will decrease, raising the price level and lowering real

  37. maroeconomics

    GDP=330 Government spending increases by 30 Investment increases by 10 Net Exports decreases by 15 MPC=.2 What is the new equilibrium GDP?

  38. Macroeconomics

    Wondering if I am doing this correctly?? If net taxes are increased by 3 billion dollars by how much would we expect real GDP to change? My answer is: d) If the government increases taxes by 3 billion dollars we would use the tax multiplier to determine

  39. economics

    What are the following variables used for in economics: Nominal GDP, Real GDP, GDP Deflator and CPI?

  40. Macroeconomics

    The following calculations help you see how the ratio of debt to GDP changes from one year to the next. Suppose that in a hypothetical country with a currency called the ducat, debt is equal to 140 trillion ducats and GDP is equal to 100 trillion ducats.

  41. Macroeconomics

    Where are we in the business cycle? What is the real GDP today? What is the largest component of GDP? What is the smallest component of GDP? What is the fastest growing component of GDP and why? What components of GDP were involved in the change from last

  42. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run? a.Real GDP will fall,

  43. Economics

    GDP=375 Government spending increases by 50 Taxes increase by 50 MPC=.9 What is the new equilibrium GDP?

  44. economics

    Assume Real GDP is at potential level initially and government is running a balanced budget. Now assume that the stock market is seeing a boom and causing a affecting real wealth of households. a. What is the effect of this change on the economy's Real

  45. Economics

    What is the % of GDP is the national debt? My Answer: The percentage of GDP is national debt is approx. 77%. Is this correct? Please post the figures you're using for GDP and national debt. I went and used the latest figure of Real GDP which was the third

  46. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run? a.Real GDP will fall,

  47. Macroeconomics

    if investment increases by $100 and, as a result, GDP ultimately increases by $200, the multiplier equals?

  48. econ

    Real GDP equaled $9,191 billion in 2000 and $9,215 billion in 2001. Both figures are adjusted for changes in the value of the dollar using a chained price index with a base year of 1996. Which of the following could explain the increase in real GDP in

  49. Purchasing Power of Income/ Economy

    We use the _________ to determine the purchasing power of income. A. Interest rate. B. Real GDP. C. CPI. D. GDP. E. None of the above. Check this site for your answer. http://www.bls.gov/cpi/

  50. college Macroeconomics

    consider a country with an economic structure consistent with the assumptions of the classical model. Suppose that businesses in this nation suddenly anticipate higher future proftability from investments they undertake today. explain whether or how this

  51. math

    Average Growth Rate(2000-2009)of China - GDP: 10.9 Population: 0.8 Per Capita GDP: 10.1 Ethiopia - GDP: 7.5 Population: 2.8 Per Capita GDP: 4.7 How fast does total output(GDP)have to grow in order to raise per capita GDP in Instructions: Enter your

  52. macroeconomics

    gov. increases expenditures by $100 billon and marginal propensity to consume is 0.50 by how much will equilibrium gdp charge

  53. economics

    At an initial point on the aggregate demand curve, the price level is 100, and real to GDP is $15trillion. After the price level rises to 110, however, there is an upward movement along the aggregate demand curve, and real GDP declines to $14 trillion. If

  54. Economics

    Suppose that the MPC = 0.8 and that $12 trillion of real GDP is currently being demanded. The government wants to increase real GDP demanded to $13 trillion. By how much would it have to increase government spending to achieve this goal? Can someone give

  55. economics

    Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to .075. Assuming that Ricardian equivalence holds true, what is the effect on equilibrium real GDP? On saving?

  56. Macro

    The great depression was the worst ecomonic disaster in US history in terms of declines in real GDP and increases in the unemployment rate. Use the data in the following table to calculate the percentage decline in real GDP between 1929 and 1933 Year

  57. Macroeconomics - Please help

    How does the aggregate expenditure multiplier change given a decrease in marginal propensity to import and marginal propensity to consume?

  58. macroeconomics

    Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP Deflator: 1 Inflation 2.2 Real GDP Per capita: _________ Population 283.7 Year – 2001 Nominal GDP: ________ Real GDP: 9,891 GDP Deflator: _________ Inflation 2.4 Real GDP Per capita: _________

  59. macroeconomics

    should we care more about nominal GDP or real GDP?? Thank you for using the Jiskha Homework Help Forum. Here is a link that discusses that very question: http://economics.about.com/cs/macrohelp/a/nominal_vs_real.htm A GDP based on the prices that prevailed

  60. macroeconomice

    Will marginal propensity to spend (d) will be low if, propensity to import (m) is low, marginal propensity to consume (b) is low and tax rate is (t) is low?

  61. macroeconomice

    Will marginal propensity to spend (d) will be low if, propensity to import (m) is low, marginal propensity to consume (b) is low and tax rate is (t) is low? Take a shot. Do some research, then tell us what you think. hint: think about how each of your

  62. econ-HELP!

    CAN ANYONE PLEASE HELP// 1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate? 2. The

  63. ECON--HELP!!!

    I am at work and am sending this on my cell phone.. BEFORE MY EXAM TONIGHT, CAN ANYONE PLEASE HELP// 1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the

  64. Economic

    All of the following refer to the Economy of Ecoland: - GDP in 1990 is $1000 - Annual inflation is 5% per year from 1991 - 1995. From 1996 - 1999, inflation is 10% per year - Real GDP grows at 2% every year a) Calculate real GDP from 1990 to 1999 b)

  65. Economics

    The task of my assignment was to calculate the Nominal GDP, given the GDP deflator and the Real GDP. This is what I got. GDP Deflator Real GDP Nominal GDP 0.9 600 540 1.0 600 600 1.1 600 660 The second part of the question asks what is happening in terms

  66. economics

    suppose the marginal propensity to consume is 0,6 and investment spending increases by 20 billion. by how much will total production or income change?

  67. Economics

    The answer i got is : GDP grew 10% GDP for 2006 using 2005 as the base year increase by 20% real GDP grow? 10% If i'm right, let me know, if not, please show Calculation Thank You Use the following data to answer questions 1-3 (be sure to provide all

  68. Macroeconomics

    Let's say I am given a table of information for the values of the real GDP, consumption, investment, exports, and imports. There was an equilibrium GDP where the real GDP = Aggregate Expenditure = C + I + X - IM. If the value of investments changed (went

  69. Economics

    GDP=330 Government spending increases by 30 Investment increases by 10 Net Exports decreases by 15 MPC=.2 What is the new equilibrium GDP?

  70. ECO

    suppose US nominal GDP was $6,250 billion in 2000 and GDP chain price index is 125.0. Real GDP is:

  71. economics

    in 1990, US nominal GDP was $5,744 billion and the GDP chain price index is 93.6. Real GDP in 1996 dollars is approximately:

  72. Economics

    Suppose in 1980 nominal GDP in country F was equal to $500 and in 2000 was equal to $2400. The GDP deflator was 100 and 500, respectively. Which one is true: a) Country F in 2000 was richer, in real terms, than in 1980 b)prices have increased faster than

  73. macroeconomics

    GDP rises from $4 trillion in 2006, the base year, to $5 trillion in 2012. The GDP deflator in 2012 is 120. Find real GDP in 2012. Find the percentage increase in real GDP between 2006 and 2012.

  74. marcoenomics

    Assume Country X has much larger real GDP than county Y. Despite its low real GDP figure, is it possible for the standard of living, as measured by GDP per capita, in Country Y to be better than the standard of living in Country X? Please explain.

  75. MACRO 2 ECON

    2.4 (Investment and the Multiplier) This chapter assumes that investment is autonomous. What would happen to the size of the multiplier if investment increases as real GDP increases? Explain. LO3 3.1 (Shifts of Aggregate Demand) Assume the simple spending

  76. macroecon

    the greatest expansionary impact of a budget deficit will occur when: a-government borrows the money from the general public b-economy is operating in the intermediate range of its aggregate supply curve c-marginal propensity to save for the economy is

  77. Macroeconomics

    How do you calculate the nominal GDP and the real GDP of something? I know the formula for GDP is y=c+I+G+NX but in a problem like an economy produced this many of good#1 and this many of good#2 last year. The price of each good #1 was $8 last year, and

  78. economics

    Prepare a two- to three-page analysis by answering the questions below. Be sure to cite your references using APA format. What is nominal GDP? What is real GDP? What is included in each? Why are these measures important? What do they tell us? What was GDP

  79. Econ

    Do people living in countries with higher real GDP necessarily have better living standards compared to countries with relatively lower GDP? Give practical example. 2. What measures would better compare the well-being (living standard) for residents of

  80. Macroeconomics

    In graph form, what will a decrease in marginal propensity to import look like?

  81. Macroeconomics

    Could someone please show me in a graph how a decrease in marginal propensity to consume would look please

  82. macroeconomic

    Can someone help me with this question pls.. A country has a factory and build two bulldozers at a total cost of $320. The country also know that due to the miscalculation of demand, the factory had been unable to sell some of its output of baked

  83. Macroeconomics

    If GDP increases by 5 percent in the same that the deficit is run, What happens to gross debt as a percentage of GDP? What happens to the level of debt held by the public as a percentage of GDP? deficit was $300 billion

  84. Economics

    GDP=520 Government spending decreases by 15 Taxes decrease by 20 Investment increases by 30 Net Exports decrease by 30 MPC=.75 What is the new equilibrium GDP?

  85. Economics

    1. What is the % of GDP is the national debt? My Answer: The percentage of GDP is national debt is approx. 77%. Is this correct? I went and used the latest figure of Real GDP which was the third quarter of 2006 being $11,443,000,000,000.50, which came from

  86. math

    Suppose a certain economy's consumption function is as follows, where C(x) and x are measured in billions of dollars. C(x) = 0.76x1.1 + 18.19 Find the marginal propensity to consume (dC/dx) when x = 7. (Round your answer to three decimal places.)

  87. Economics

    Consider the following simplified economy described by a Cobb-Douglas production function with three factors of production: “K” is physical capital (the number of machines), “L” is labor (the number of workers), and “H” is human capital (the

  88. Economics

    What does a marginal propensity in import decrease look like in a graph? Thank you so much in advance - I understand the ramifications of the decrease was just curious as of what it would look like graphically.

  89. Economics

    Discuss the relationship between the level of Gross Domestic Product (GDP) and economic well-being. What factors of well-being are missing from the GDP? Is there a point where the GDP could increase to such a high level that economic well-being could be

  90. Macroeconomics help!

    Consider the following simplified economy described by a Cobb-Douglas production function with three factors of production: “K” is physical capital (the number of machines), “L” is labor (the number of workers), and “H” is human capital (the

  91. Economics

    Explain how each will impact the size of autonomous expenditure multiplier, other variables constant. (a) Decrease in marginal propensity to consume (b) Decrease in marginal propensity to import

  92. ECON-can anyone help

    CAN ANYONE PLEASE HELP// 1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate? 2. The

  93. macroeconomics

    In each of the following cases, either a recessionary gap or inflationary gap exists. Assume that the aggregated supply curve is horizontal so that the change in real GDP arising from a shift of the aggregated demand curve equals the size of the shift of

  94. Economics

    GDP=400 Investment decreases by 5 Government spending increases by 25 Consumption increases by 5 MPS=.2 What is the new equilibrium GDP?

  95. Econ

    When considering economic growth, many policy makers focus on real GDP per capita since it takes into account the potentially distorting effects of ______________ and ________________. Any large, sustainable increase in real GDP must be the result of

  96. Economics

    1. Suppose there is a stock market crash in Japan. Using a well-labeled graph show the effect in the short run on the equilibrium price level in the U.S.A., equilibrium Real GDP in the Unites States of America, equilibrium unemployment rate in the Unites

  97. macroeconomics

    suppose that congress enacts a significant tax cut with the expectation thatthis action will stimulate sggregated demand and puch the real gdp in the short run. in gact, however, neither real gdp now the price level changes significantly as a result of the

  98. Economics

    *MPC = 3/4 *change in Taxes(T) = $5 Billion *change in Government Purchases= - $12 Billion *Find the change in equilibrium Real GDP? My answer that I get is a $63 Billion fall in Real GDP. Is this correct? I too get a fall of $63B Thanks for the help.

  99. math

    Suppose a certain economy's consumption function is as follows, where C(x) and x are measured in billions of dollars. C(x) = 0.76x^1.1 + 18.19 Find the marginal propensity to consume (dC/dx) when x = 7. (Round your answer to three decimal places.)

  100. economics

    1. Use the following information to answer the questions below: Quantities Produced Prices CDs Tennis Racquets CDs Tennis Racquets Year 2004 100 200 20 110 Year 2005 120 210 22 120 a. Calculate real GDP using prices from 2004. By what percent did real GDP

Pages

  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20