Change in the level of real gdp, Macroeconomics

Assignment Help:

Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion. a. 0.9 b. 0.8 c. 0.75 d. 0.6.


Related Discussions:- Change in the level of real gdp

Live around a hazardous waste dump, : Suppose that 100 people live around a...

: Suppose that 100 people live around a hazardous waste dump. If the people continue to live there for 20 years, one of them will likely contract a painful, non-fatal cancer that w

Product development project, What is the primary difference between a resea...

What is the primary difference between a research project and a product development project?

Explain production as an income generating activity, Explain production as ...

Explain production as an income generating activity. What are the principal difference among government purchases of goods & service and transfer payments? Why are in

Velocity and the quantity equation, when the income velocity of circulation...

when the income velocity of circulation (V) rises, why does the economy''s total output must rise?

Unemployed individual decides to spend the day fishing, 1. An unemployed in...

1. An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is equal to A) The cost of bait and any other monetary expenses. B) Zero, becaus

Explain the competitive model, Identify and explain the evidence for and ag...

Identify and explain the evidence for and against the competitive model. Provide specific examples.

Single nonprofit provider, For a single nonprofit provider, describe an out...

For a single nonprofit provider, describe an output-maximizing model to predict supplier behavior?

Changes in price promotion, An end-of-aisle price promotion changes the pri...

An end-of-aisle price promotion changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the promotional price be?

Reducing the budget deficit, Reducing the budget deficit by cutting governm...

Reducing the budget deficit by cutting government spending could conceivably: A. increase income if interest rates rise enough and government spending is more productive than priva

FEDERAL BUDGET, HOW TO GET THE REVENUES AND EXPENDITURES AS A PERCENT OF GD...

HOW TO GET THE REVENUES AND EXPENDITURES AS A PERCENT OF GDP?

Write Your Message!

Captcha
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