Questions from Macroeconomics

Q: (a) What is the implied MPC in the News on

(a) What is the implied MPC in the News on page 186? (b) What is the implied APC?

Q: If every $1,000 increase in the real price of

If every $1,000 increase in the real price of homes adds 6 cents to annual consumer spending (the “wealth effect”), by how much did consumption decline when home prices fell by $2 trillion in 2006–200...

Q: What was the range, in absolute percentage points, of the

What was the range, in absolute percentage points, of the variation in quarterly growth rates between 2005 and 2008 of (a) Consumer spending? (b) Investment spending? ( See Figure 9.8 for data given...

Q: If the consumption function is C = $300 billion + 0

If the consumption function is C = $300 billion + 0.9Y, (a) How much do consumers spend with incomes of $4 trillion? (b) How much do they save?

Q: If the marginal propensity to consume is 0.8,

If the marginal propensity to consume is 0.8, (a) What is the value of the multiplier? (b) What is the marginal propensity to save?

Q: What would happen in the apple market if the government set a

What would happen in the apple market if the government set a minimum price of $5.00 per apple? What might motivate such a policy?

Q: By how much did annualized consumption decline in November 2008 when GDP

By how much did annualized consumption decline in November 2008 when GDP was $14 trillion?

Q: If Korean exports to the United States decline by $15 billion

If Korean exports to the United States decline by $15 billion (World View, p. 217) by how much will cumulative Korean spending drop if their MPC is 0.75?

Q: According to World Bank estimates, by how much did consumer spending

According to World Bank estimates, by how much did consumer spending decline as a result of the 40-point drop in the index of consumer confidence between 2007 and 2009?

Q: How large is the inflationary GDP gap in Figure 10.9

How large is the inflationary GDP gap in Figure 10.9?