Question: the E question have been solved but F is a little bit difecult to me. all question are solved except F. F. If population is
F. If population is about 10 million people, how much would be the increase in GDP per capita as a result of this AED50bn increase in G? (2 marks) E. Assume that that the government increased its spending by AED50 billion (increase in spending G, or AG). Calculate the expected increase in output (AY) as a result of this increase in G? (2 marks) 50 billion/1.2794 = $39.08 billion a $39.08 billion increase in government spending should increase GDP by 50 billion (shift AD to the right) F. If population is about 10 million people, how much would be the increase in GDP per capita as a result (2 marks) of this AED50bn increase in G? Question 11 (13 marks) This question is about how to use G (or AG) to influence output (or AY). A. From the co assumption function, Interpret the value of Marginal Propensity to Consume (MPC = 0.2184, or 21.84%) (1 mark) B. Calculate the spending multiplier and interpret it (3 marks) C. Calculate the tax multiplier and interpret it (3 marks) D. Based on your calculations in 2 and 3, do you suggest that the government uses spending (G) or Taxes (T) to stimulate the economy in the UAE and why? (2 marks) E. Assume that that the government increased its spending by AED50 billion (increase in spending G, or AG). Calculate the expected increase in output (AY) as a result of this increase in G? (2 marks) F. If population is about 10 million people, how much would be the increase in GDP per capita as a result of this AED50bn increase in G? (2 marks) F. If population is about 10 million people, how much would be the increase in GDP per capita as a result of this AED50bn increase in G? (2 marks) E. Assume that that the government increased its spending by AED50 billion (increase in spending G, or AG). Calculate the expected increase in output (AY) as a result of this increase in G? (2 marks) 50 billion/1.2794 = $39.08 billion a $39.08 billion increase in government spending should increase GDP by 50 billion (shift AD to the right) F. If population is about 10 million people, how much would be the increase in GDP per capita as a result (2 marks) of this AED50bn increase in G? Question 11 (13 marks) This question is about how to use G (or AG) to influence output (or AY). A. From the co assumption function, Interpret the value of Marginal Propensity to Consume (MPC = 0.2184, or 21.84%) (1 mark) B. Calculate the spending multiplier and interpret it (3 marks) C. Calculate the tax multiplier and interpret it (3 marks) D. Based on your calculations in 2 and 3, do you suggest that the government uses spending (G) or Taxes (T) to stimulate the economy in the UAE and why? (2 marks) E. Assume that that the government increased its spending by AED50 billion (increase in spending G, or AG). Calculate the expected increase in output (AY) as a result of this increase in G? (2 marks) F. If population is about 10 million people, how much would be the increase in GDP per capita as a result of this AED50bn increase in G? (2 marks)
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