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An economy has a marginal propensity to consume of 0.5, and Y*, income-expenditure equilibrium GDP, equals $500 billion. Given an autonomous increase in planned investment of $10 billion, show the rounds of increased spending that take place by completing the accompanying table. The first and second rows are filled in for you. In the first row, the increase of planned investment spending of $10 billion raises real GDP and YD by $10 billion, leading to an increase in consumer spending of $5 billion (MPC × change in disposable income) in row 2, raising real GDP and YD by a further $5 billion. a. What is the total change in real GDP after the 10 rounds? What is the value of the multiplier? What would you expect the total change in Y* to be based on the multiplier formula? How do your answers to the first and third questions compare? [Answer Field] [Save Answer] [Print Answer] [Show All Answers] b. Redo the table starting from round 2, assuming the marginal propensity to consume is 0.75. What is the total change in real GDP after 10 rounds? What is the value of the multiplier? As the marginal propensity to consume increases, what happens to the value of the multiplier?
Illustrate what is change in productivity of non-defective units for Aztec using new assembly process? Note: list answer in three decimal place format.
You are working with your supplier to identify ways to reduce the variation in the seal strength of packages manufactured in the plant -Analyze the data and provide your recommendations to the team as to next steps.
what types of strategic plans must wild west make? Is the "doing-nothing" viable? If Wild west's mission appears too broad, which business would you trim first?
The foreman estimates which the value of the work actually finished is about $162, 000. Illustrate what are the spending also schedule variances for the project. Illustrate what are the SPI also CPI.
If the backup computer must be activated by a switch if the first computer fails and the switch has a reliability of .98 what is the overall reliability of the system? Both the switch and backup must function.
Discuss the ethical violations concerning CVS Pharmacy banning tabacco products in their stores. Does this make sense from a "market system" perspective? Will other major corporations follow suit? What propted them to make this decision? (750-900 ..
determine the number of units where either choice has the same cost.
Is there a move to push back economic freedom? Explain in detail and support your response with correctly cited references from the textbook.
A vending machine dispenses hot chocolate or coffee. Service time is 30 seconds per cup and is constant. Customers arrive at a mean rate of 78 per hour, and this rate is Poisson-distributed.
Which leadership style might be best suited to each of the three general levels of management within an organization and how do decisions concerning span of management and the use of committees affect organizational structure?
Solve for x: log_10?x=3 5. You've earned your degree and have been hired by an established company. You were able to negotiate a beginning salary of $2500 per month with annual 6% raises each year.
What competitive alternatives are there to products Coinstar Offers? Do these alternatives pose a short or long term threat?
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