Explain the relationship between MPL and MC

Q: How much would the government have to change spending to close the gap?

A: There is multiplier effect occur in the economy so there is no need to send the same amount of…

Q: With the help of a diagram, explain the derivation of the TotalRevenue curve.

A: Total Revenue Total revenue refers to the sum of all goods and services sold. It is computed by…

Q: You are given the following data concerning planned expenditure on He C = 8.5 + 0.5 Yd TA = 0.25 Y +…

A: Disclaimer: “Since you have posted a question with multiple subparts, we will solve the first three…

Q: How does a rise in taxes influence the MP Curve and IS Curve? Please illustrate your answer using…

A: MP curve shifts when Monetary policy changes but here the Tax has increased which means it will…

Q: A firm can produce according to the following production function: Q = F(K,L) = 20K^0.4L^0.6…

A: MPL or Marginal Product of Labor is the change in the output when an additional unit of labor is…

Q: How do i trace this scenario on the circlar flow model, firms inventories unexpectedely rise?

A: We see a two-sector circular flow diagram with households and business firms. In this model…

Q: QUESTION 17A change in which of the following variables will have NO direct effect on domestic…

A: Domestic demand refers to the total amount of money spent on goods and services by individuals,…

Q: If the marginal prospensity to consume is 0.75, an increase in autonomous investment of 800.00 will…

A: Venture multiplier is a commitment of J.M Keynes. Keynes accepted that an underlying expansion in…

Q: 1.Show the relationship between short-run MC and MPL both mathematically and graphically.

A: Labor's marginal product is proportional to production costs. Fixed and variable costs are separated…

Q: Make a graph based off the following: Construct a consumption function from the data given here and…

A: Answer: Graphical presentation of the consumption function: According to the above figure, the…

Q: tudentFunctions/Interface/acellus_engine.html?ClassID=186172877 VI The Spending Multiplier is found…

A: Marginal propensity to consume is the ratio of change in consumption to the change in income. It…

Q: What are the relationships between TP, MP and AP curves?

A: The additional quantity of output produced as a result of using more input is referred to as…

Q: If government purchases are increased by $100, taxes are reduced by $100, and the MPC is 0.8,…

A: Government spending multiplier = 1 / (1 - MPC) Tax multiplier = - MPC / (1 - MPC)

Q: What happens to GDDP if the investment icreases by 100 with MPC 0,8 and tax 20%

A:

Q: Find the value of MPC when multiplier is stated as 0.97

A: MPC or the marginal propensity to consume is the percentage of consumer's income that the consumer…

Q: What is the Impact of Covid-19 on the Economy?

A: The COVID 19 has destroyed the world economy in shambles. The pandemic has hit millions of people at…

Q: Calculate the value of MPS is 0.8 calculate MPC

A: # The formula for marginal propensity to consume is given as:- MPC = 1 - MPS

Q: C = 400 + 0.80Y and I = 200, then the level of consumption at equilibrium income is equal to

A: Equilibrium level of income: Y = C + I + G + NX where, Y is the income C is the consumption  I is…

Q: Consider the following economy: Y+C+I+G Y=8000 G=2500 T=2000 C=1000+2/3(Y-T) I=1200-10,000r…

A: Consumption function  C = c(bar) + mpc*(Y-T)

Q: What effect has the hand sanitiser market during COVID had on Australia's GDP?

A: During the COVID pandemic demand for sanitizers increased explicitly which as a result caused the…

Q: Define the term inventories?

A: Inventories refer to the stock of goods of a firm or business.

Q: Durable goods and non-durable goods comprise approximately ________ of the supply side of the GDP.…

A: GDP is the sum of consumption, investment, government spending and net exports in an open economy.

Q: IF THE MPC IS 0.85 what will be the MPS????? need fast

A:

Q: DLSU is a large private university, that is known for its strong athletics program, especially in…

A: Complementary goods: refers to those goods which can be used together to satisfise the consumer's…

Q: Compare the impact of a recession that reduces consumer income by 10 percent on the consumption of…

A: Income elasticity of demand = % change in demand% change in income % change in demand = Income…

Q: Calculate the value of MPS when the value of MPC is given to be as 0.25

A: We know that the sum of marginal propensity to consume and the marginal propensity to save is always…

Q: Calculate the value of MPC. The value of MPS is given to be as 0.95

A: # Sum of MPC and MPS together taken gives 1 MPC+MPS = 1

Q: Calculate the value of MPC when MPS Is 0.41

A: # MPC measures the degree of change in consumption with respect to income and on the other hand MPS…

Q: By how much would the $90 billion 2008 tax rebates have shifted AD if the MPC was 0.95? billion

A: Answer : Tax rebate leads to increase in disposable income. Increase in disposable income leads to…

Q: Solve for the MPK, assuming that the MPL in the production of smartphones is 50 per smartphone per…

A: with the given information, MPL = 50 MRTS = 1/4

Q: Suppose the MPC is 0.6. Beginning from equilibrium, investment demand rises by 30. (a) How much does…

A: Here, given information is, MPC=0.6 Change in investment demand=30 To find: change in total output…

Q: Calculate the value of MPS when the value of MPC is 0.13

A: The formula for MPS is given as:- MPS = 1 - MPC

Q: Income and consumption changes for five people are shown in the table. Given this information, rank…

A: Table -1 shows the income change and consumption change:

Q: MPC. Explain in short.

A: Spending for the attainment of utility is characterised as consumption. Investing, on the other…

Q: What is the role of aggragate demand in eliminating the GDP gap?

A: The aggregate demand curve shows that the different quantities are demanded at the various price…

Q: What is the effect on MPE, if there is an increase in a) MPC b) MPS c) MPM ) MTR

A: MPE stands for marginal propensity to expend. MPS stands for marginal propensity to save MPC stands…

Q: eggregate expenditure (AE) curve

A: The total expenditure made by everyone during a duration calculated in aggregate expenditure (AE).…

Q: Define the tax multiplier and give the algebraic expression.

A: A payment that is compulsory and is levied by the Government to fund the expenditures of the state…

Q: An economy is defined by the following equations: C=500+0.8(Y-T) 1=300+0.3Y X=0.3Y* IM=0.3Y T=1000,…

A: Given, Consumption: C=500+0.8(Y-T) Investment: I=300+0.3Y Government Expenditures: G=2000 Exports:…

Q: With an MPC of 90, what would you expect to be the total impact on spending/incomes from the…

A: Here we calculate the impact of spending from construction by calculating the multiplier by using…

Q: Define and Derive Multiplier and Accelerator.

A: In macroeconomics, the multiplier depicts an association between income and investment but the…

Q: Consumption = 115 + 0.6Y Investment = 550 Use the above information to answer the questions that…

A: Aggregate expenditure is a measure of national income of an economy that considers the sum of all…

Q: Income and consumption changes for five people are shown in the table. Given this information, rank…

A: Table -1 shows the income change and consumption change.

Q: The graph represents consumption (C) as a function of isposable income (DI). Assume the consumption…

A: MPC stands Marginal Propensity to consume which show the relationship between income and consumption…

Q: The upward-sloping TVC curve explains why an increase in production increases the TC.

A: According to the production theory, a firm always works towards maximizing its profit and a firm…

Q: Summarize and illustrate the aggregatedemand curve andthe factors that shift it

A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…