Keynesian theory, Macroeconomics

Assume the United States has the following consumption information:

                                    GDP = Income             Consumption

                                          $4000                          $4500

                                          $6000                          $6000

                                          $8000                          $7500

                                        $10000                          $9000

                                        $12000                        $10500

Also the economy has G = $1100, I = $404, and XN = $15.  Unemployment in the economy is currently 5.2% and inflation is 0.1%

a.   What is the MPC in this economy?

b.   What is the multiplier in this economy?

c.   What is the equilibrium level of GDP in this economy?

d.   What is the equilibrium level of Income in this economy?

Posted Date: 2/22/2013 5:30:27 AM | Location : United States







Related Discussions:- Keynesian theory, Assignment Help, Ask Question on Keynesian theory, Get Answer, Expert's Help, Keynesian theory Discussions

Write discussion on Keynesian theory
Your posts are moderated
Related Questions
Tennis-Warehouse recently conducted a study of long distance phone calls made by its employees. The study showed that the length of the calls has a mean of 3.2 minutes, a standard

What is the development process? Development is measured through outcomes that are development occurs while key indicators of human well-being enhance. A reduction of poverty

the difference between the AC and the AVC curve

If the price of DVD players decreases, we can expect that the demand for DVDs will: a. increase. b. be unaffected. c. shift left. d. Decrease

The demand curve for product X is given by QXd = 340 - 4PX.\ a) How much consumer surplus do consumers receive when Px = $45? b) How much consumer surplus do consumers receiv

Money Supply and Monetary Policy   All modern societies use money as the medium of exchange. Since money can be exchanged for goods and services it also becomes a financial asse

Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0

Question 1 How was the Classical Theory of interest role criticized by Keynes? Question 2 Discuss the barter system that was used in early times in lieu of money Question

Consider the following: "The physiocrats spoke of the natural order and favored laissez-faire yet strongly supported the absolute authority of the monarchy." Analyze this supposed

Charge is distributed with constant volume density D throughout the rectangular box with length a, width b and height c.  a) what is the monopole moment of this system. b) What i