Keynesian theory, Macroeconomics

Assignment Help:

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?


Related Discussions:- Keynesian theory

Indirect tax, Discuss whether high indirect taxes are best way to discourag...

Discuss whether high indirect taxes are best way to discourage smoking

Relationship between saving and income, The following table contains data o...

The following table contains data on the relationship between saving and income. Rearrange these data into a meaningful order and graph them on the accompanying grid. What is the s

Price of beer to increase by 10 percent, A recent article estimated that th...

A recent article estimated that the elasticity of the rate of gonorrhea with respect to the price of beer is about 0.8. If this estimate is correct, are unprotected sex and beer su

Present worth of a cash flow, What is the present worth of a cash flow that...

What is the present worth of a cash flow that gives you $6 in every time period from 1 to 20 when the interest rate is zero?

monetary account , link of monetary account with other sectors and its mea...

link of monetary account with other sectors and its meaning

Analyse the assumptions of price elasticity, In an article about the financ...

In an article about the financial problems of USAToday,News week reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise

Explain the following equation, Which of the following equations is FALSE f...

Which of the following equations is FALSE for perfectly competitive firms? A. Total cost = fixed cost + variable cost B. Marginal cost = change in total cost / change in quantity o

Concept of preference - utility function, Concept of Preference, Utility Fu...

Concept of Preference, Utility Function: Concept of Preference, Utility Function and Indifference Curve  Consumer preference ('R') specified by the above axioms can be represe

Classical business cycle theory, The rate of interest in the UK also showed...

The rate of interest in the UK also showed very interesting results, to an impulse shock on oil price. The middle left graph from Fig 4.4 shows the results. Initially, in the short

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