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

Same Basket of Goods, assume the cost of a market basket in 2008 is 1717.0....

assume the cost of a market basket in 2008 is 1717.0. Calculate the cost of the same basket of goods and services in 2007. Price index in 2008 was 100 and price index in 2007 was

International trade, why is international trade important south africa

why is international trade important south africa

Liberalisation and changing sources of fdi, Liberalisation and Changing Sou...

Liberalisation and Changing Sources of FDI: European countries  had been major sources of FDI inflows  to India until 1990. However, their relative importance declined in the

plot the aggregate demand, The economy of Mainland has the following aggre...

The economy of Mainland has the following aggregate and aggregate supply schedules:                               Real GDP Demanded                         Real GDP Supplie

Goods services will be produced and sold in the us, Who decides what goods ...

Who decides what goods services will be produced and sold in the US? Ans) It is mostly the American consumer. The US government also plays a big role in the nation's economy, co

Cost reduction, Cost Reduction Positive measures to effect a lowering o...

Cost Reduction Positive measures to effect a lowering of costs include:  reducing national insurance contributions (an  ad valorem  tax on employing labor);

Estimate the value of wacc method, You can work on this assignment individu...

You can work on this assignment individually or in a group of up to 4 people.  If you choose to work as a group, your group should hand in one assignment and you will all receive t

Aggregate Demand, According to liquidity preference theory, an increase in ...

According to liquidity preference theory, an increase in the price level causes the interest rate to: a.decrease, which decreases the quantity of goods and services demanded. b.inc

The difference among a floating and managed exchange rate, Explain the diff...

Explain the difference among a floating and managed exchange rate. The key distinction here is that a floating exchange rate is set by market forces, i.e. supply and demand. A

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