If the current value of GDP is $13.28 trillion and the government is planning to increase spending by S800 billion (all in one year), the percentage increase in GDP using the multiplier estimate of the first economist is percent. (Round your response to two decimal places.)

Q: Calculate the value of multiplier if MPS is 0.73

A: In a fractional-reserve banking system, a money multiplier is one of several closely related ratios…

Q: If consumers decided to save a higher percentage of their disposable income, the value of the…

A: The spending multiplier, or monetary multiplier, is a financial proportion of the impact that an…

Q: Using the above graph (assume RGDP amounts are in trillions of dollars), which policy would return…

A: Given multiplier = 4 Output gap = Actual output – potential output = 12 – 10 = 2 As there is…

Q: Given consumption = 100 +0.75Yd Tax = 50 + 0.5Y Export = 200 Import = 50 + 0.25Y Government…

A: The disposable income Yd is; Yd=Y-Taxes=Y-50-0.5Y Yd=0.5Y-50

Q: the multiplier coefficient is 5, by what amount does real GDP output have to increase or decrease in…

A: Aggregate expenditure is sum of consumption spending, investment spending, government purchases and…

Q: Calculate MPS if it's given that multiplier is 7.9

A: The data presented in the question is as follows:- We are given with the value of multiplier which…

Q: Find the value of multiplier when MPC is equals to 0.70

A:

Q: Is the mpc in the multiplier .75?  only because multiplier is 1/(1-mpc) which would make sense for…

A: In the original question, MPS has given by stating "average households will save 25 cents of every…

Q: The basic idea behind the multiplier is that an increase in GDP brings about an additional, larger…

A: Let I0 , G0 , and NX be the autonomous investment, government spending and net export of an economy…

Q: Suppose MPC equals 0.9, government taxes 30% of all incomes, and the marginal propensity to import…

A: here we calculate the change in G, by using the relevant given information , so the calculation as…

Q: If the multiplier is 5, then the MPC is Answer 0.05 0.5 0.6 0.8   Question 43 In a certain economy,…

A: Hello. Since you have posted multiple questions and not specified which question needs to be…

Q: Suppose the MPC is .80, the MPI is .10, and the income tax rate is 10 percent. What is the…

A: Given that, MPC = 0.80, MPI = 0.10 and income tax rate is 10 percent.

Q: In an economy without taxes and imports, an increase in investment of $50 billion increases…

A: Answer to the question is as follows :

Q: If an increase in investment spending of $20 million results in a $200 million increase in…

A: An investment is an asset or item acquired for the purpose of generating income or valuation. The…

Q: In an economy the value of MPS is given as 0.72  Calculate the value of multiplier

A: We are given that the value of Marginal propensity to save is 0.72 We have to calculate the value of…

Q: If Guy Barnes receives $1,000 from his newly created government job and gives $900 to Jingles…

A:

Q: When price level is considered, the value of the multiplier will be less than that suggested by the…

A: The over simplified formula of the multiplier is, Multiplier = 1 / (1-MPC) , where MPC is the…

Q: Calculate the value of multiplier if MPS is 0.43

A: The information given to us is as follows:- Marginal propensity to save = 0.43 We need to calculate…

Q: When the economy is in a recession, the government will want to increase output. If the multiplier…

A: Please find the answer below.

Q: following graph shows the total expenditure line (TE) for an economy where current equilibrium…

A: Real GDP is where demand and supply meets. athus, real GDP = $400 Billion  as potential GDP is less…

Q: Calculate MPC, MPS and the Multiplier if consumption expenditure increases by $4,000 as a result of…

A: MPS+MPC =1

Q: If the MPC is 0.75, then the multiplier is 4. Select one: True False

A: Given MPC = 0.75 Multiplier = 4

Q: Suppose that out of the original 100 of government spending, 33 will be recycled back into purchases…

A: The aggregate expenditure in an economy is a function of consumption expenditure, investment…

Q: Calculate the value of multiplier if change in income is $1100 million and the change in investment…

A: The information being given is:- Change in income = $1100 million Change in investment = $350…

Q: If the ratio of MPS and MPC is 1:4 then find the value of multiplier.

A: The economics as a study is based upon the idea that the resources which the economies have with…

Q: Using the table below, answer the following question: Real GDP ConsumptionPlanned (Y) GovernmentNet…

A:

Q: With following values, c = 0,7, t = 0,41 and m = 0,86 use the multiplier and calculate the potential…

A:

Q: If the ratio of MPS and MPC is 1:4 then find the value of multiplier.

A: The concept of an investment multiplier states that every increase in public or private investment…

Q: What is a multiplier? How does the multiplier effect occur? Please provide examples of at least…

A: The term multiplier is a widely used term in macroeconomics. It measures the amount by which…

Q: is the multiplier? What is the change in total spending? Use a diagram to show which curve shifts…

A: Given : Increase in autonomous consumption = $50 To find out : Mutiplier and Change in total…

Q: ind the value of multiplier when the value of MPS is 0.891

A: Initially in the question, We have to find the value of multiplier = ? MPS = 0.891

Q: (simple spending multiplier) for each of the following values for the MPC. Determine the size of the…

A:

Q: As the marginal propensity to consume (MPC) increases, As the marginal propensity to save (MPS)…

A: The formula is given as: Multiplier = 1/ (1-MPC) or 1/MPS

Q: If a $568 increase in investment spending increases income by $568 in the first round of the…

A: here we calculate the increase in income by using the given information so calculation as follow-

Q: If the value of MPS and MPC is same. What will be the value of multiplier

A: The information being given to us is as follows:- The value of Marginal propensity to save and…

Q: If disposable income is 90 percent of national income, the marginal propensity to consume ( out of…

A: From the given information: Disposable income = 90% of national income The marginal propensity to…

Q: Find the value of multiplier if MPS is 0

A: The information give to us is:- Marginal propensity to save = 0 Multiplier (k) = ? We have to…

Q: Q1. Calculate the value of multiplier  when mpc is 0.5.

A: Below is the value of marginal propensity to consume: MPC = 0.5 The formula for the Multiplier: K =…

Q: The following graph shows the total expenditure line (TE) for an economy where current equilibrium…

A: Real GDP (350) is less than potential GDP (600), so there is a contractionary gap. To close the gap,…

Q: If a $100 billion increase in government spending results in a $500 billion increase in real GDP,…

A: Answer to the question is as follows :

Q: If we observe that every increase in income of $120 million generates an increase in consumption of…

A: Given: The increase in income is = $120 million The increase in consumption = $80 million To Find:…

Q: Scenario 34-1. Take the following information as given for a small, imaginary economy:   • When…

A: To find multiplier, we need to know the marginal propensity to consume i.e MPC. Marginal propensity…

Q: The multiplier process can occur when a decrease in investment spending… a) Increases household…

A: "The investment spending multiplier indicates how much aggregate income will change with any change…

Q: If y = C+I where C 50+.75 Y and I 50 What is Y, C, and the multiplier? What if instead I= 50 +.05Y?…

A: At the Equilibrium  Y = C+I As given C =50+0.75Y I = 50

Q: In economics, the multiplier effect refers to the fact that when there is an injection of money to…

A: Given: Tax cut=$8 billion Saving=17% Spending=83%