Q: In an economy, autonomous consumption expenditure is $50 billion,
In an economy, autonomous consumption expenditure is $50 billion, investment is $200 billion, and government expenditure is $250 billion. The marginal propensity to consume is 0.7 and net taxes are $2...
See AnswerQ: Suppose that the economy is at full employment, the price level
Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion. In the short run, does the price level remain at 100? Explain why...
See AnswerQ: Suppose that the economy is at full employment, the price level
Suppose that the economy is at full employment, the price level is 100, and the multiplier is 2. Investment increases by $100 billion. Are the values of the multipliers in the short run and the long r...
See AnswerQ: Explain how an increase in business investment at a constant price level
Explain how an increase in business investment at a constant price level changes equilibrium expenditure.
See AnswerQ: An economy has a fixed price level, no imports, and
An economy has a fixed price level, no imports, and no income taxes. MPC is 0.80, and real GDP is $150 billion. Businesses increase investment by $5 billion. Calculate the multiplier and the change in...
See AnswerQ: In 2014, China’s real GDP is growing at 7 percent a
In 2014, China’s real GDP is growing at 7 percent a year and its population is growing at 0.5 percent a year. If these growth rates continue, in what year will China’s real GDP per person be twice wha...
See AnswerQ: Mexico’s real GDP was 13,405 trillion pesos in 2013 and
Mexico’s real GDP was 13,405 trillion pesos in 2013 and 13,805 trillion pesos in 2014. Mexico’s population was 118.4 million in 2013 and 119.5 million in 2014. Calculate: a. The growth rate of real GD...
See AnswerQ: South Africa’s real GDP was 1,900 billion rand in 2011
South Africa’s real GDP was 1,900 billion rand in 2011 and 1,970 billion rand in 2012. South Africa’s population was 50.5 million in 2011 and 51.0 million in 2012. Calculate: a. The growth rate of rea...
See AnswerQ: While gross domestic product growth is picking up a bit in emerging
While gross domestic product growth is picking up a bit in emerging market economies, it is picking up even more in the advanced economies. Real GDP in the emerging market economies is forecasted to g...
See AnswerQ: The first table describes an economy’s labour market in 2014 and the
The first table describes an economy’s labour market in 2014 and the second table describes its production function in 2014. Suppose that labour productivity increases in 2014. What...
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