Equilibrium level of income

Assignment Help Business Economics
Reference no: EM131449533

Assume that the marginal propensity to expend is 0.50 and therefore the multiplier is 2. According to the multiplier model, an increase in autonomous exports of 100 would raise the equilibrium level of income by 200. Explain how the multiplier process amplifies the initial shift in autonomous expenditures.

Reference no: EM131449533

Questions Cloud

Explain major effects that government policies have : Examine major effects that government policies have on production and employment. Predict potential effects that government policies could have on your company.
Derive bert demand schedule : From this imformation, derive Bert's demand schedule. Graph his demand curve for bottle water.
What are the most important characteristics of a program : What are the most important characteristics of a program to consider when deciding what measurement tool to implement in a program evaluation? Why?
Perform a strategic audit of tesla motors : Perform a strategic audit of Tesla Motors, Inc. The audit should be at least 2400 words and include the following: Current Situation
Equilibrium level of income : According to the multiplier model, an increase in autonomous exports of 100 would raise the equilibrium level of income by 200.
Discuss promotional goals you would discuss : Discuss the promotional goals and cultural factors you would discuss with Sand Coast and what aspects of the recommended promotional strategy you would address.
Main types of informational technology applications : Discussion on the four main types of informational technology applications used in medical care delivery.
Keynesian policy of as-ad : He has asked you to develop a policy that can be addressed at the upcoming State of the Union Address.
What role does technology play currently in business : Using your chosen business, evaluate the "current state" of the technology within the organization as it relates to people and processes of the business.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd