I need the answer as soon as possible Use the table below to determine the MPC and MPS.Disposable IncomeConsumptionSaving$1000$1100-$10020001600400300021009001. Using the above information, what is the MPC and MPS when the DI is 3000?MPC =MPS =2. What equation could you use to determine the Multiplier, using MPC and MPS?Multiplier =Multiplier =3. If there is an initial investment spending of $5.000: what would the total change in GDP be?

here we can find the MPC and MPS and the change in income by using the disposable income which are…

Answered: 1. Using the above information, what is…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.10P

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Assume that, without taxes, the consumption schedule for an economy is shown below: GDP, Billions Consumption, Billions $100 $120 200 200 300 280 400 360 500 440 600 520 700 600 Graph this consumption schedule and determine the size of the MPC. Assume that a lump-sum (regressive) tax of $10 billion is imposed at all levels of GDP. Calculate the tax rate at each level of GDP. Graph the resulting consumption schedule and compare the MPC and the multiplier with those of the pretax consumption schedule. Now suppose a proportional tax with a 10 percent tax rate is imposed instead of the regressive tax. Calculate and graph the new consumption schedule and note the MPC and the multiplier. Finally, impose a progressive tax such that the tax rate is 0 percent when GDP is $100, 5 percent at $200. 10 percent at $300, 15 percent at $400, and so forth. Determine and graph the new consumption schedule, noting the effect of this tax system…
Suppose that when government lowers corporate taxes this results in an increase in business investment of $280 billion. Further assume that MPC = 0.93. Calculate the value of MPS: Calculate the value of the multiplier: Compute the first three rounds of multiplier effects and cumulative effect on AD: Cumulative effect on AD: 1st cycle: 2nd cycle: 3rd cycle: Compute the total cumulative impact on AD after an infinite number of cycles (the "nth" cycle):
If Multiplier is 1/1-MPC and MPS+MPC=1, MPC= Marginal propensity to consume and MPS= marginal propensity to save. Using this formula and MPC is 0.9 multiplier is __________ and if MPS =0.4 multiplier is ________________ a 10 and 10 b 1 and 2.5 c 10 and 2.5 d 1.111 and 1.666
The table below provides income and consumption data in billions of dollars: Disposable Income Consumption Savings 100 80 --- 200 150 --- What is the marginal propensity to save for this economy? A) 0.75 B) 0.5 C) 0.3 D) Cannot be determined
You are given the following information for the economy of Datalink: C = 250 + 0.85Yd T = 150 + 0.5Y I = 280 G = 400 X = 600 M = 100 - 0.125Y Determine the equilibrium level of income. What is the value of the multiplier? What is the level of consumption, government revenue and imports at the equilibrium level of income? If the government wishes to increase the equilibrium level of income by 200 to close a deflationary gap, by how much must government spending rise to achieve this? What is the government’s budget stance? Produce a sketch of your answers in (i) and (iv) above. Assume that this hypothetical economy is experiencing a severe recession, by how much would government spending have to increase to shift the aggregate demand curve rightward by GH¢ 2500. How large a tax cut would be needed to achieve this same increase in equilibrium income? Why does the tax cut not have the same effect as the increase in government spending?
The Marginal Propensity to Save (MPS) is 0.75 and the Marginal Propensity to Consumer (MPC) is 0.25. The Multiplier effect will be Select one: 4 times 3 times 0.3 time 1.33 times 1 time
If in a economy, the marginal tax rate = 0.1, the marginal propensity to save = 0.25, and the marginalpropensity to inport = 0.005, what is the value of the multiplier? A 1.43, B 1.54, C. 1.67, D 2.0, and E2.5
if a $200 billion increase in invest spending creats $200 billion new income in the first round of the multiplier process and $120 billion in second round, the MPS in the economy is A. 0.4 B. 0.6 C. 0.2 D. 0.3

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1. Using the above information, what is the MPC and MPS when the DI is 3000? MPC = MPS = 2. What equation could you use to determine the Multiplier, using MPC and MPS? Multiplier = %3D Multiplier = 3. If there is an initial investment spending of $5.000; what would the total change in GDP be?