D AND E, thank you! 6. Use the following table to answer these questiðns!YCG$ 500$ 600$ 700$ 800$ 900$1,000$500$590$10$20$60$10$20$4014.$680$10$20$20$770$10$20$ 015.$860$10$20-$20$950$10$20-$40a. What is the MPC?b. What is the MPS?c. What is the MPI?d. What is the level of aggregate expenditures at eachlevel of income?16.e. Graph the aggregate expenditures function.in evercise 6, what is the linear equa-

The national income and the aggregate expenditure form a relationship and can be witnessed on the…

Answered: c. What is the MPI? d. What is the…

c. What is the MPI? d. What is the level of aggregate expenditures at each level of income? e. Graph the aggregate expenditures function. what is the linear equa.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 6PA

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Suppose, the government of Australia incurs a budget deficit of $50 billion due to increased government spending in 2020 as result of Covid 19. Because of this, the government borrowing in 2021 increases by the same amount. Compare the size of equilibrium changes in 1) investment, 2) public saving, 3) private saving and 4) national saving (public saving + private saving) with $50 billion increase in borrowing. Compare the changes (increase/decrease) in these variables indicating same, less or more than the $50 billion.
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Assume:         PQ = $2.00                  PL = $2.00                               PK = $4.00 K         MPK    MP/PK            MRP/PK          L          MPL      MP/PL                   MRP/PL 1          28        7 14 1          15        5 10 2          24        6 12 2          12        4 8 3          20        5 10 3          9          3 6 4          12        4 8 4          6          2 4 5          8          2 4 5          3          1 2 6          4          1 2 6          1          0.5 1 7          2          0.5 1 7          0.5       0.25 0.5 8          1          0.25 0.5 8          0.25     0.13…
Assume:         PQ = $2.00                  PL = $2.00                               PK = $4.00 K         MPK    MP/PK            MRP/PK          L          MPL      MP/PL                   MRP/PL 1          28        7 14 1          15        5 10 2          24        6 12 2          12        4 8 3          20        5 10 3          9          3 6 4          12        4 8 4          6          2 4 5          8          2 4 5          3          1 2 6          4          1 2 6          1          0.5 1 7          2          0.5 1 7          0.5       0.25 0.5 8          1          0.25 0.5 8          0.25     0.13…
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