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A: # The correct answer (C) " As price rises demand falls"
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A: Ans is in step 2
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- What is the mariginal propensity to consume? Can the mariginal propensity to consume be grreater than 1? Explain.Give a well explained answer. What's the benefit of expenditure on R&D in an economy.suppose the government of a country increases spending on roads and highways by 1000 crore taka. show graphically and explain why might this shift be larger than 1000 crore taka.
- Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure ALL questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumers) Consider the following closed economy SImodel set upY = 18000C = 300 + 0.8(Y − 2500)I = 3500 − 400(r)G = 3000T = 2500(a) Compute the impact on r and I, if Gincreases by 500.(b) Compute the impact on r and I, if Gincreases by 500.(c) Compute the impact on r and I, if bothG and T increase by 500.Q.4.2 Use the information below to answer the questions below.C = 400 + 0.6YI = 500Q.4.2.1 Calculate autonomous spending. Q.4.2.2 Calculate the equilibrium level of income. Q.4.2.3 Illustrate with the aid of a diagram the equilibrium level income calculated in Q.4.2
- Government spending (as a percentage of gross domestic expenditure) hasincreased significantly over the past decades. Explain any two reasons for thistrend.Jhon was given a $2000 stimulus check. He will spend 75% of his money(which is 1500$). The next person will spend 75% of the 1500$ and so on and so forth. 1)How much total expenditure will result from the 2000$ stim check? 2)calculate the value of the multiplier.COMPUTE FOR MP AND AP. EXPLAIN.
- Consumption = 115 + 0.6YInvestment = 550Use the above information to answer the questions that follow:Q.4.1 Calculate the value of autonomous spending. Q.4.2 Calculate the value of the multiplier. Q.4.3 Calculate the equilibrium level of income. Q.4.4 Is the equilibrium level of income also the full employment level of income? Explainyour answer.Q.4.5 Identify any three non‐income determinants of consumption.C= R60 million I= R280 million Goverment= R310 million C = 0.75 1. Calculate the Autonomous expenditure 2. Calculate the Equilibrium level of income. 3. Draw a graph to illustrate the EquilibriumImagine there is a consumption smoother (also known as a PIH consumer) who expectsto live for another 40 years and to work for another 30 years. They just learned thatthey will receive a permanent pay increase from their job of $800. How much extra dothey consume this year? What is their marginal propensity to consume?