Calculate the marginal propensity to consume

Assignment Help Microeconomics
Reference no: EM13746639

Question 1: Below are consumption and disposable income (YD) data.

 

Disposable Income (YD)

Consumption

2013

$250 000

$180 000

2014

$310 000

$216 000

a. Calculate the marginal propensity to consume (mpc) and then the multiplier in this economy.

b. Using the multiplier you found in part a, calculate the effect of a $6000 increase in investment spending on real GDP.

Reference no: EM13746639

Questions Cloud

How did the european views of asia change from 1650-1850 : How did the European views of Asia change from 1650-1850, and what were the causes?
Measures of effectiveness at meeting goals : Measures of effectiveness at meeting goals and operational performance indicators related to internal conditions
Was scientific revolution intended to be a war on religion : Was the Scientific Revolution intended to be a war on tradition and religion? Explain including notable works, theories, and figures.
Discuss evidence provided by authors concerning loss : Discuss the evidence provided by the authors (books) concerning the loss of democratic rights and the consequences of legal repression?
Calculate the marginal propensity to consume : Calculate the marginal propensity to consume (mpc) and then the multiplier in this economy.
Explain whether you believe reagans support for contras : Explain whether or not you believe Reagan's support for the Contras, despite their drug trafficking, helped US national security.
What makes it particularly innovative : How was Walmart's sustainability index developed and what makes it particularly innovative?
Concept of sustainable business : What are the concepts and actions you've learned that can be implemented in your current or future career and is there any concept about sustainability that you question?
Explaining pattern of migration and why : Discuss which theory of migration does the best job of explaining pattern of migration and why. Please include a bibliography.

Reviews

Write a Review

Microeconomics Questions & Answers

  Suppose that market price of firms product is p300 find

a the short run total cost function of a perfectly competitive firm is given as follows assume that the market price of

  The price of oranges has risen dramatically

The price of oranges has risen dramatically. Which of the following is likely to happen?

  A residual claimant and a provider of capital

In which of the following economic activities do we commonly find a proprietor acting as a supervisor, a residual claimant and a provider of capital?

  Calculate the quotas redistributive effect

Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect and what is the overall welfare loss to Venezuela as a result of the quota?

  How much will hiring these inputs cost them

Jake and Paul run a paper company. Each week they need to produce 1,000 reams of paper to ship to their customers. The paper plant's long-run production function is Q = 4 K^0.75 L^0.25, where Q is the number of reams produced, K is the quantity of ca..

  Describe the opportunity and accounting costs of going green

Describe the opportunity and accounting costs of "Going Green." Use a specific example to illustrate your point. For example, purchasing a Chevy Volt.

  Will this firm produce in the short run

Fit-To-A-Tee, a "price-taking" T-Shirt design shop, has a schedule of total fixed costs, total variable costs, total costs and marginal cost

  1 you manage a movie theatre and you hire a statistical

1. you manage a movie theatre and you hire a statistical consultant to estimate the demand for movie tickets. using

  The demand for luxury goods is more price elastic

The demand for luxury goods is more price elastic than is the demand for necessities. Why do you believe this is the case or if you disagree explain your reasoning?

  What is the average fixed cost

What is the average fixed cost for the third unit of output and what is the average variable cost for the 5th unit of output?

  Determine what is the velocity of money

Which tool do you think is most commonly used If the Fed wanted to decrease the supply of money in the economy, would the Fed buy or sell securities in the open market and what would be the first effect of this policy.

  A monopolist has two types of customers there are 100 of

a monopolist has two types of customers. there are 100 of type a who will each pay up tp 10 for a single unit of the

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