a. What is the marginal propensity to consume implicit in these data? b. What is the numerical

Question:

a. What is the marginal propensity to consume implicit in these data?

b. What is the numerical value of the expenditure multiplier for this economy?

c. What is the equilibrium level of real GDP?

d. Suppose that government purchases (G) decreased from 1,000 to 400 at each level of income. What would happen to equilibrium real GDP?

Real GDP NX 6,100 6,900 7,700 8,500 9,300 10,100 10,900 7,000 8,000 9,000 10,000 11,000 12,000 13,000 400 1,000 1,000 1,

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Macroeconomics Principles and Applications

ISBN: 978-1111822354

6th edition

Authors: Robert E. Hall, Marc Lieberman

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Question Posted: Jun 09, 2018 08:20 AM

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a. What is the marginal propensity to consume implicit in these data? b. What is the numerical

Question:

Real GDP NX 6,100 6,900 7,700 8,500 9,300 10,100 10,900 7,000 8,000 9,000 10,000 11,000 12,000 13,000 400 1,000 1,000 1,000 1,000 1,000 1,000 1,000 500 400 500 400 400 500 500 500 400 400 500 400 500

Step by Step Answer:

a The MPC is 080 since each 1000unit increase Y results in an 800unit increa...View the full answer

Macroeconomics Principles and Applications

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