Can you help determine the attached? If Investment Increases by $15 billion and the economy's MPC Is 0.8, the aggregate demand curve wll shiftMultiple Choicerightward by $75 billion at each price level.rightward by $15 billon at each price level.leftward by $75 billion at each price level.leftward by $30 billion at each price level.

Given: Increase in investment=$15 billion MPC=0.8

If Investment increases by $15 billion and the economy's MPC Is 0.8, the aggregate demand curve will shift Multiple Cholce nightward by $75 billin at each price level. nghtward by $15 billion at each price level. leftward by $75 billion at each price level. leftward by $30 billion at each price level.

If Investment increases by $15 billion and the economy's MPC Is 0.8, the aggregate demand curve will shift Multiple Cholce nightward by $75 billin at each price level. nghtward by $15 billion at each price level. leftward by $75 billion at each price level. leftward by $30 billion at each price level.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 6.13P

See similar textbooks

Similar questions

If investment decreases by $20 billion and the economy's MPC is .5, the aggregate demand curve will shift: Select one: a. leftward by $40 billion at each price level. b. rightward by $20 billion at each price level. c. rightward by $40 billion at each price level. d. leftward by $20 billion at each price level.
If investment increases by $15 billion and the economy’s MPC is 0.8 the aggregate demand curve will shift A.Leftward by $75 billion at school price level B .Leftward by $30 billion at each price level C. Rightward by $15 billion at each price level D. Rightward by $75 billion at each price level
Autonomous Consumption R535mMarginal propensity to consume is 0.75Investment Spending R322mGovernment Spending R300mImports R175m + 0.08YExports R283mTaxes = 0.1YFull employment level of output is R3 483m Calculate the value of induced imports in thiseconomy, given the equilibrium level of output.
in a closed economy with no government, where aggregate demand is determinedby autonomous consumption, investment (which is independent of output), and themarginal propensity to consume.a) Given that autonomous consumption is 20, investment is also 20, and the marginalpropensity to consume is 0.6, write out an equation for aggregate demand (AD) in thiseconomy. b) Given this aggregate demand equation, and the equilibrium equation Y = AD, usealgebra to find the equilibrium level of Y. c) Draw a diagram with output (Y) on the x-axis and aggregate demand (AD) on the yaxis. Draw two lines on this diagram: (i) Y = AD, and (ii) the aggregate demandfunction from part (a). Label the intercept of the AD line, and the point where the twolines intersect, with numerical values. (3 marks)d) Suppose that the marginal propensity to consume falls from 0.6 to 0.5. What wouldthe new equilibrium level of Y be? Illustrate your answer in the diagram you drew forpart (c). (2 marks)e) Calculate the value of…
Assume the marginal propensity to consume (MPC) is 0.6 and the government increases taxes by $30 billion. The aggregate demand curve will shift ....... Select one: a. inward and to the left by $45 billion. b. outward and to the right by $18 billion. c. inward and the the left by $18 billion. d. outward and to the right by $45 billion.
If house holds decide to save a larger portion of thier income, what effect would this have on the output, employment and price level in the short run
18 - : If aggregate demand increases in an economy while aggregate demand is constant in the short run, which of the following statements is correct for the new equilibrium point?A) price decreases and national income increasesB) price rises national income risesC) price increases and national income does not changeD) price goes up and national income goes downE) price decreases and national income decreases.19 - : In which of the following expressions is the equation of change given correctly?A) MV=VK B) MT=PV C) MV=PT D) MP=VY E) MV=P
An economy’s aggregate demand is specified as follows:C = 300 + 0.8Yd, Investment (Io) = 230, Taxes (T) = 120 + 0.2Y, Government final purchase = 400, Export (X) =240 and Import (M) = 400.i. Find the equilibrium national incomeii. Find the value of the injections in this economyiii. How much withdrawals are when the economy is in equilibrium
Considering the growing potential threat of terrorists’ attacks worldwide, the President of an economyapproved a fiscal spending of $24 billion to upgrade its national defense. a. Starting in a long-run equilibrium, draw a well-labelled AD-SRAS-LRAS diagram for the economy. b. Use the same diagram in part (a) to show the SR effect on the economy’s GDP (Y), the price level, andunemployment when the federal government increases its spending on national defense. c. To stabilize the price level and the economy’s GDP, what kind of monetary policy should the economyadopt? Illustrate your answer in the same diagram in (a).
An economy’s aggregate demand is specified as follows: C = 300 + 0.8Yd, Investment (Io) = 230, Taxes (T) = 120 + 0.2Y, Government final purchase = 400, Export (X) =240 and Import (M) = 400. Find the equilibrium national income? Find the value of the injections in this economy iii. How much withdrawals are when the economy is in equilibrium?
Focus on the concept of marginal propensity to consume and reflect on which of the following would be implied by a highmarginal propensity to consume.O A small change in consumption when income changesO A high saving rateO A high marginal tax rateO An equilibrium level of income near full employmentO A low marginal propensity to save
Suppose actual real GDP is $14 trillion and potential real GDP is $18.5trillion. If the marginal propensity to consume (MPC) is 0.85and government purchases increase by $526billion, then to close this gap lump-sum taxes should change by $_______billion. Please respond accurately and provide a detailed explanation with calculations; if not, I will downvote several times. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.