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|
Yd |
Consumption Expenditure |
|
$ 0 |
$ 6,000 |
|
$ 10,000 |
$ 14,000 |
|
$ 20,000 |
$ 22,000 |
|
$ 30,000 |
$ 30,000 |
|
$ 40,000 |
$ 38,000 |
|
$ 50,000 |
$ 46,000 |
- Calculate MPC, MPS, and Multiplier
- How much equilibrium level of income will increase by if autonomous Investment of $4,000 was made?
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- Refer to the consumption function graph above. How much is the MPC at the disposable income of $200? Group of answer choices 0.75 cannot be determined -0.35 -0.3 -0.25 Expandius 600 500 430 400 115 330 300 240 230 200 100 0 100 200 000 G 400 500 600 4ping Line DanceConsider the following table, which shows a household's disposable income and consumption expenditures. All values are expressed in dollars. Compute the marginal and average propensities to consume for each level of income and fill in the table. (Round your responses to two decimal places) Disposable Income (Y) 0 300 600 900 1,200 1,500 Desired Consumption (C) 420 660 900 1,140 1,300 1,620 MPC-ACIAY NA APC = C/Y₂ NAYd Consumption Expenditure $ 0 $ 4,000 $ 10,000 $ 12,000 $ 20,000 $ 20,000 $ 30,000 $ 28,000 $ 40,000 $ 36,000 $ 50,000 $ 44,000 Calculate MPC, MPS, and Multiplier
- The multiplier 15) If the consumption function is C = $800 billion + 0.8Y (a) What is the MPC? (b) How large is autonomous C? (c) How much do consumers spend with incomes of $4 trillion? (d) How much do they save?You are an economic advisor to the government. Discuss your opinion . a) How COVID-19 pandemic will affect the consumption behavior as well as the investment done by the firms and household for the next two years? b) What are the actions or policies that the government can implement to face this situation? please answers with analysis and --graph (if possible)1. What would happen to multiplier if investment were to be positively related to income? 2. is it possible for total saving to fall when people beome more thirfty? 3. What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?
- What is constrains optimization, explain and discuss the significance of langrage multiplier.Consider this economy: C = 100 + 0.5Y |= 400 + 0.1Y Drag and drop options on the right-hand side and submit. For keyboard navigation... SHOW MORE V Marginal propensity to consume 1000 Multiplier 0.5 Income of equilibrium 500 Consumption of equilibrium 1250 Investment of equilibrium 2.5 600 525 725 II II II II II II II II II1.12 Study the following diagram and answer the question that follows. Expenditures (billions of dollars per year) 3.500 3000 DOO 2500 2000 1500 1000 500 Figure 9.1 45% At an income level of $2,000 billion, a) Consumption equals $1,500 billion. b) Saving equals $0. c) The MPC equals 0.80. d) There is dissaving. o 500 1000 1500 2000 2500 3000 3500 Income (billions of dollars per year) C Ac
- Yd Consumption Expenditure $ 0 $ 4,000 $ 10,000 $ 12,000 $ 20,000 $ 20,000 $ 30,000 $ 28,000 $ 40,000 $ 36,000 $ 50,000 $ 44,000 Calculate equilibrium level of income if autonomous Investment of $6,000 was made.Find out (i) if MPC is .75, what will be the MPS? (ii) if APS is .3, what will be the APC?500 1,000 Aggregate output, Y (billions of dollars) Figure 8.1 Refer to Figure 8.1. An increase in the MPC Select one: Oa shifts the saving function downward. Ob.makes the caving function fatte Oashifts the consumption function upard. .2.makes the consumption function fatter) billions of dollars)