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
An owner can lease her building for $100,000 per year for the next three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All reve

Index number formulas

This problem is based on the Ricardian Model. Assume that 2 countries, Stormlands and Reach, use White Walkers' labor to produce 2 goods, lumber and wheat.

Q. Is Household savings depend on GDP in the cross model? Household savings depends on Y since S H = Y - C - NT and C and NT both rely on Y. How it depends on Y can't be concl

Aggregate supply and the AS curve The AS curve is the aggregate supply as a function of P. It is horizontal when thesupply is low and upward sloping when the s

There are 4 main types of market economies. They are also called as Economic Systems. The four are Free Market, Mixed Market, Traditional and Command Economy

Q. Consumption function in the IS-LM model? The consumption function will be the same as in cross model, consumption will depend positively on Y. In the classical model, consum

As people went from barter societies to more advanced economies, money had to be invented. Several things successively served as money in the course of economic evolution. Arrowhea

1. # of sellers, # of buyers 2. entry and exit conditions 3. product characteristics 4. short run P&Q determinations and the resulting 3 possibilities for excess profit (graphs ar

definition of cheap money