MPC, Macroeconomics

Assignment Help:
A change in government purchases of goods and services results in a change in real GDP equal to $200 million. Assume the absence of taxes, international trade, and changes in the aggregate price level.
Suppose that the MPC is equal to 0.75. What was the size of the change in government purchases of goods and services that resulted in the increase of GDP of $200 million?

Related Discussions:- MPC

Decision maker''s approach or logic, Listed here are several examples of ba...

Listed here are several examples of bad, or at least questionable, decisions. Evaluate the decision maker's approach or logic. In which of the six decision steps might the decision

Illusrtate the equilibrium point, QXd = 14 - (1/2)PX and QXs = (1/4)PX - 1 ...

QXd = 14 - (1/2)PX and QXs = (1/4)PX - 1 Instructions: Round your answers to the nearest whole number. a. Determine the equilibrium price and quantity. Show the equilibrium g

Bank of canada announces that it will raise the money supply, Suppose the B...

Suppose the Bank of Canada announces that it will raise the money supply in the future but does not change the money supply today. Using the Fisher equation, explain what happens t

Describe utility function, Suppose that Mr. Chauncey Gardener consumes two ...

Suppose that Mr. Chauncey Gardener consumes two goods, X 1 and X 2 .His preferences can be described by the following utility function: U = X 1 0.5 X 2 0.5 He

Find out the expected return on capital, Butthole Industries is buying out ...

Butthole Industries is buying out Avengers, Inc.  Butthole and Avengers both have market capitalizations equal to their fair value or the present value of their net cash flows.  Bu

How to calculate participation rate., 7 people have jobs, 3 want to work bu...

7 people have jobs, 3 want to work but are not, and there are 20 adults. What is the participation rate?

Factors influence group members, Norms influence behavior conformity among ...

Norms influence behavior conformity among group members. What factors will influence group members to conform to a group's norms, and when will members remain independent? Do indiv

Aggregate demand with inflation, Aggregate demand with inflation In pre...

Aggregate demand with inflation In previous versions of Keynesian model, Components of aggregate demand did not depend on P. In IS-LM and in AS-AD models, investments depended

Money and banking, Suppose the price level in year 2009 is 100 and $100 buy...

Suppose the price level in year 2009 is 100 and $100 buys 100 notebooks that year. If the price level rises to 125 in year 2010, what is the new value or purchasing power of the do

What is an oligopoly?, Oligopoly is a marketplace where the deliver is cont...

Oligopoly is a marketplace where the deliver is controlled by a small group of companies. In this condition, the actions of single company will have a material effect on the whole

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