Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million  Exports = R150 million Autonomous  imports = R100 million Marginal propensity to consume =2/3 Tax rate = 1/10 Marginal propensity to import = 1/10 Yf = R2 150 million Autonomous spending = 650 million (already calculated)  Calculate the size of the multiplier.  Calculate the size of equilibrium level of income

Q: MPC = .75   What is the value of the multiplier?

A: MPC=0.75 MPS=1-0.75         =0.25

Q: Suppose the MPC is .6 and consumption increases by $8 billion. Consequently, total income through…

A: Given information, Change in consumption: $8 billion (increase) MPC: 0.6 Find: change in total…

Q: If the MPC (Marginal Propensity to Consume) value of an economy is 0.8 then... a) Multiplier = 1.25…

A: MPC = 0.8 Multiplier = 1/(1 - MPC) Multiplier = 1/(1 - 0.8) - 1/0.2 = 10/2 = 5 The multiplier is the…

Q: Suppose that autonomous consumption (a) is 200, private investment spending (I) is 340, government…

A: Given -  a = 200, I = 340, G = 300, T = 300, b = 0.8, t = 0.25

Q: the multiplier coefficient is 5, by what amount does real GDP output have to increase or decrease in…

A: Aggregate expenditure is sum of consumption spending, investment spending, government purchases and…

Q: In the income multiplier is equal to 4, then a $25 initial increase in government spending leads to…

A: The public authority spending multiplier impact is clear when a steady increase in spending prompts…

Q: If marginal propensity to save is 0.22  Calculate the value of k(Multiplier)

A: We are given with the value of marginal propensity to save as:- MPS = 0.22 Multiplier = k  = ?

Q: You are given the following information on the macroeconomy: Consumption:                 200 +…

A: Income (Y) can be calculated as follows. Equilibrium income is $2,125. From the above calculation…

Q: Solve the attachment. image

A: GDP { Gross Domestic product } is the value at market prices of all final services and goods…

Q: Autonomous consumption = R100m Investment spending = R300m Government spending = R200 million…

A: Autonomous Consumption = 100 Investment Spending = 300  Government Spending = 200  Exports = 150…

Q: Suppose MPC equals 0.9, government taxes 30% of all incomes, and the marginal propensity to import…

A: here we calculate the change in G, by using the relevant given information , so the calculation as…

Q: An economy has a fixed price level, no imports and no income taxes.  MPC is 0.75 and real GDP is…

A: Given MPC= 0.75 Real GDP Y =$190 billion  Government expenditure is increased by $5 billion. Price…

Q: In an economy without taxes and imports, an increase in investment of $50 billion increases…

A: Answer to the question is as follows :

Q: The autonomous expenditure multiplier that has the highest value is:    a) the net exports…

A: multiplier is used to determine how much an initial change in the variable affect  output. . The…

Q: (Simple Spending Multiplier) For each of the following values for the MPC, determine the size of the…

A:

Q: Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and…

A: Marginal propensity to consume (MPC) refers to the level of additional consumption expenditure due…

Q: If the marginal propensity to consume (MPC) is .75 for a closed economy, what is the multiplier…

A: Marginal propensity to consume refers to the change in consumption with respect to change in income.

Q: Income is 678 Trillion and consumption is 662 Trillion then income increases to 698 Trillion and…

A: Note : Since you have uploaded multiple questions , only the first question shall be answered at a…

Q: An economy with no government is described by the following: • Marginal propensity to consumer = 0.8…

A: Disclaimer :- as you posted multipart questions, as per guidelines we are solving only the first 3…

Q: Consider an economy in which autonomous consumption, planned autonomous investment, autonomous…

A: Given, Autonomous consumer spending =$3,000  Investment = Ip = $5,000 Government spending = G =…

Q: How do induced taxes and​ needs-tested spending change during a​ recession? What is the effect of…

A: The induced taxes refer to the taxes which vary according to the national income or the gross…

Q: An economy with no government is described by the following: • Marginal propensity to consumer = 0.8…

A: An inflationary output gap refers to the macroeconomic concept which measures the difference between…

Q: An economy is currently in equilibrium. The following figures refer to elements in its national…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: f the marginal propensity to consume is 0.75 and the federal government decreases spending by $200…

A: When the government makes changes in its spending decision, it has a multiplier effect on the…

Q: In each of the following cases, calculate the values of MPC, MPW, and the spending multiplier. Enter…

A: Spending multiplier: - it is a fraction that shows the magnitude of the change in national income…

Q: Suppose that there is an autonomous increase in investment spending of $20 billion and the MPC is…

A: Marginal propensity to consume is the change in consumption spending with change in disposable…

Q: The multiplier (expenditure multiplier) is the ratio between which two measures? marginal propensity…

A: Multiplier: - it is a fraction that shows the magnitude of the change in national income due to a…

Q: If autonomous expenditure remains constant, and there is a decrease in the proportion of aggregate…

A: The economies are made up of various entities, who play an important role in determining the level…

Q: Which of the following statements are correct? The introduction of government spending increases…

A: From the following, the correct statement is:

Q: Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar…

A: The overall demand for all services and goods in an economy is known as "aggregate demand". Consumer…

Q: MPS is 0.10 B) MPC is 0.90 C) Multiplier is 10 D) All of the above

A: MPS is referred to Marginal Propensity to Save. It is the part of each extra dollar($) of income(Y)…

Q: Assume that the marginal propensity to consume is 0.75. The government wishes to increase the…

A: Given, Marginal propensity to consume (MPC) = 0.75 Recessionary output Gap = $100 billion Since the…

Q: Answer the following questions: Instructions: In part a, round your answers to 2 decimal places. In…

A: In an economy, the value of multiplier can be computed in two ways, such that: =1/(1-MPC) And,…

Q: The expenditure multiplier implies that a dollar spent in the economy leads to. Select the correct…

A: Expenditure multiplier is the factor by which aggregate spending changes due to change in initial…

Q: Consider a hypothetical closed economy in which households spend $0.80 of each additional dollar…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The equilibrium level of output for an economy is given as R2420m, with autonomous spending of…

A: The current level of output is R2420m The autonomous spending is R968m…

Q: The following graph shows the total expenditure line (TE) for an economy where current equilibrium…

A: Real GDP (350) is less than potential GDP (600), so there is a contractionary gap. To close the gap,…

Q: Assuming that the MPC is 0.80, calculate the value of the government expenditures multiplier.

A: Given:- MPC=0.80 To calculate:- Government expenditure multiplier=? Please find the image attached…

Q: An economy with no government is described by the following: • Marginal propensity to consumer = 0.8…

A: Balanced Budget function  is the function of government expenditures and revenues which depicts that…

Q: If a $100 billion increase in government spending results in a $500 billion increase in real GDP,…

A: Answer to the question is as follows :

Q: If a $2000 increase in income leads to an $1600 increase in consumption expenditures, then the…

A: consumer income is split in two parts MPC and MPS here we calculate the following as follow-

Q: 6 If the marginal propensity to consume (MPC) is 0.40, the expenditure multiplier will be equal to…

A: Marginal propensity to consume refers to the change in consumption due to the change in income.…