Question: Professor Kangoh Lee asks his students at Towson State University
Professor Kangoh Lee asks his students at Towson State University, "Suppose that in an economy, real consumption, real investment, and real government purchases remain the same from one year to another, while the real trade deficit increases. Can we conclude that real GDP must fall during the same period?" Explain.
Answer to relevant QuestionsUse the following data to calculate GDP, GNP, NNP, national income, personal income, and personal disposable income. Give an example of transitory income. What effect does this income have on the marginal propensity to consume? Calculate consumption for each level of national income, given the accompanying levels of autonomous consumption, C a , and marginal propensities to consume. If you live in Morocco, you don't have to love soft drinks to appreciate Coca-Cola's contribution to the Moroccan economy. Explain. Fill in the missing cells for C, S, and I a in the following table, given that autonomous consumption = $100, MPC = 0.50, and intended investment = $200. Indicate whether the economy is in equilibrium.
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