Multiplier depends upon the fraction of any change in income

Assignment Help Business Economics
Reference no: EM13815516

The multiplier, or the change in equilibrium GDP that will occur per any change in spending, can be determined by calculating the fraction of any change in income that survives all of the leakages and goes on to start the next round of spending. That is, the multiplier depends upon the fraction of any change in income that becomes...

the change in exports

the change in savings

the change in imports

the change in domestic consumer spending

the change in disposable income

the change in business investment spending

Reference no: EM13815516

Questions Cloud

Principal-agent problems : Principal-agent problems:
Unionization adds to the cost of hiring labor : Unionization adds to the cost of hiring labor, thereby decreasing aggregate supply. All else remaining constant, what will be the long-run impact on the price level and GDP output?
Due to ever-accelerating technological growth : Due to ever-accelerating technological growth, _________________ unemployment is on the rise worldwide.
Fraction of any change in income will survive the leakage : If import spending were the ONLY leakage from an economy and the marginal propensity to import is one-third, what fraction of any change in income will survive the leakage and go on to start the next round of spending?
Multiplier depends upon the fraction of any change in income : The multiplier, or the change in equilibrium GDP that will occur per any change in spending, can be determined by calculating the fraction of any change in income that survives all of the leakages and goes on to start the next round of spending.
Useless to the economy to increase government expenditures : Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
Determine the number of our devoted to work and leisure : Suppose that trade off between work N and leisure L for a constant level of utility of 200 is expressed as u(n, L) = NL or 200= NL the budget constraint is l =24-w/P)N for a wage rate of w/P=4 determine the number of our devoted to work and leisure
Best-selling awesome gadget : Your manufacturing company is currently producing just enough of its best-selling Awesome Gadget X to me this year’s demand. The fore cast for the next year is in, and its demand is expected to double (1 million new units per yr.) and stay at this le..
Strong supporter of free trade-international trade policy : If you were a strong supporter of free trade and in charge of U.S. international trade policy, would you cut tariffs and quotas, or would you negotiate with the nation's trading partners, maintaining trade barriers unless they lowered theirs also? Di..

Reviews

Write a Review

Business Economics Questions & Answers

  Factors will contribute to the riskiness

What factors will contribute to the riskiness of these bonds.

  Tax be defensible in spite of the deadweight loss

Calculate the deadweight loss from the tax. Elucidate the tax be defensible in spite of the deadweight loss.

  Essential issue in international business

An essential issue in international business is determining which components to manufacture in-house and which to outsource to independent suppliers.

  Suppose a worker is offered a wage of 5 per hour plus a

suppose a worker is offered a wage of 5 per hour plus a fixed payment of 40. what is the equation for the worker

  What type of goods does law of one price hold quite well

For what type of goods does law of one price hold quite well. Since PPP rarely holds at any point in time, is re any substantive meaning to terms overvalued or undervalued currency.

  Illustrate what alternative decisions might you be able to

Illustrate what alternative decisions might you be able to make in the long run. Explain in 1 to 3 pages Clearly explain the factors of consider as your "Fixed Factor" and alternative short term and long term decisions.

  Is the company allocating resources efficiently

the price of business travels drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel marginal rate of substitution between electronic media and business travel is - 1. Is t..

  Explain what action should be taken in terms of adjusting

Explain what action should be taken in terms of adjusting output if it is determined that marginal cost is greater than marginal revenue.

  Use the midpoint method to compute elasticity

The reason economists use the midpoint method to compute elasticity is that:

  Calculate price, quantity and social surplus

Calculate price, quantity and social surplus for the initial state and each policy.

  Dollar rather than allowing the exchange rate to fall

Which of the following choices explains why Japan would want to maintain a fixed exchange rate at 150 yen per U.S. dollar rather than allowing the exchange rate to fall to 120 yen per U.S. dollar?

  Identify the circumstances under which sarah

identify the circumstances under which Sarah should choose package A, the circumstances under which she should choose package B.

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