Suppose the following equations represent an economy. What is the multiplier for this economy? Z = C + I + G C = 400 + .5YD YD = Y - T T = 400 I = 200 G = 1800 a. 0.5. b. 1. c. 1.5. d. 2. e. none of these

Q: Which of the following is a true statement about the multiplier? The formula for the multiplier…

A: Multiplier is an economic factor when increased or decreased causes an increase or decreases the…

Q: If a $20 increase in disposable income causes consumer spending to rise by $4, what is the…

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

Q: graph questions Ollow 45° AE = C + I 1200 450 300 900 1,300 Aggregate output, Y a. What is the value…

A: The present value of all finished products and services in the economy is referred to as aggregate…

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: What does the 45-degree line in the Aggregate Expenditures model represent? 1. a reference line…

A: The equilibrium national income is represented by the equation Y = E.  Where, Y = Income E =…

Q: Suppose  the  United  States  economy  is  repre- sented  by  the  following  equations: Z  =  C +…

A: Here, given information is: Z = C + I + G C = 500 + 0.75YD  T = 600 I = 300 G = 2000 YD = Y − T

Q: The Finance Minister in Canada asked a policy analyst the following question "what value can the…

A: Multiplier refers to the economic factor that when changed cause change in the many other related…

Q: 12. Use the graph to answer the questions that follow. a. What is the value of the MPC? b. What is…

A: Dear student, You have asked for 2 questions in a single post. I am going to answer question number…

Q: What does the multiplier mean? Under what conditions can it work in an economy? What types of…

A: Meaning of Multiplier: The multiplier theory has given by Keynes that shows the importance to…

Q: Background: Between 2002 and 2003, the United States government increased its purchases on military…

A: The multiplier effect is calculated by taking the ratio of change in an exogenous variable and…

Q: In order for the economy (GDP) to be grow and take advantage of the multiplier effect, which one of…

A: As a particular product is manufactured, cost is initiated and process of business is started.…

Q: What is the multiplier effect and how is it beneficial to the economy?

A: The multiplier effect shows the change in final income due to an injection of spending. For example,…

Q: Question 52 ( Which of the following combination will have the highest multiplier? Mpc - 0.90 t=…

A: The economies tend to have various entities, which are in the form of households, firms, investors,…

Q: Consider a hypothetical economy in which households spend $0.75 of each additional dollar they earn…

A: Answer: Given, MPC (marginal propensity to consume) = 0.75 MPS (marginal propensity to save) = 0.25…

Q: What would happen to the multiplier if the MPC were to fall? The multiplier would stay the same The…

A: Multiplier refers how much time money multiplied in market it depend on the level of consumption ,…

Q: 1.How would an increase in taxes influence the size of the multiplier in a four sector model?…

A: In a four sector model,tax is very important. It affects the multiplier in a four sector model.Due…

Q: Give an example of any factor that influences the size of the multiplier?

A: There are various factors which affect the the size of multiplier.

Q: Suppose an economy is described by the following equations: Y = C + I + G + X – M C = 14 + 0.60Yd…

A: Given Information:   Domestic income, Y = C + I + G + X – M Aggregate consumption spending, C = 14…

Q: Consider the following model of an economy with no international trade, and in which the price level…

A: The consumption of the economy, the planned investment and the government expenditure along with the…

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: Consider a hypothetical economy where there are no taxes and no international trade. Households…

A: Since you have asked many questions at once. Due to our authority guidelines we can only provide you…

Q: Determine the value of the multiplier for this economy, and find the equilibrium value of Y.

A: a) Value of multiplier can be calculated using the marginal propensity to consume, which can be…

Q: What is the minimum value of multiplier?

A: The multiplier is given by the formula:- k = 1 / ( 1 - MPC ) Where MPC is the marginal propensity to…

Q: The multiplier for the economy in the above diagram: a. is 3 b. is 4.8 C. is 4 d is 5.2

A: The measure that depicts the final value of goods and services being produced in a year during an…

Q: Assume that the unintended investment is negative. Briefly outline how the level of Ye will change…

A: Unintended investment can be positive and negative. It entirely depends on the buying of firms…

Q: Suppose that Kim K decides to spend $30,000 on an American‑made purse instead of donating it to…

A: The GDP multiplier indicates the amount of change in eth GDP of the economy which happens due to the…

Q: If MPC and MPS are equal, what is the value of multiplier?

A: MPS stands for marginal propensity to save and MPC stands for marginal propensity to consume.

Q: Discuss the multiplier effect including a description of what it describes in macroeconomic terms,…

A: The multiplier effect refers to the proportional amount of increase, or decrease, in final income…

Q: Use the following table to answer these questions:                                   Y…

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

Q: What is the relationship between the MPC and the multiplier?

A: The Keynesian consumption function shows the relationship between the consumption expenditure and…

Q: at is multiplier? Explain its forward and backward working

A: Ans in step 2

Q: Give an example of any factor that influence the size of the multiplier

A: Below is the formula for the Multiplier: Multiplier = 11 - MPCMPC = Marginal Propensity to Consume

Q: What is the negative effect if multiplier increases

A: Spending MULTIPLIER = 1 / 1-MPC     or     Change in Real GDP/ Change in autonomous spending…

Q: Use the following table. which represents the aggregate consumption function? Table: Individual and…

A: Marginal propensity to consume (MPC) refers to the level of additional consumption expenditure due…

Q: There might be many factors (economic and non-economic) that affect the size of the multiplier. What…

A: The multiplier's size is determined by a number of factors. First, it is determined by the region's…

Q: Suppose the United States economy is represented by the following equations:   Z = C + I + G…

A: National income or equilibrium level of output depends on various factors such as household…

Q: Suppose an economy is represented by the following equations. Consumption function…

A: Given: C = 300 + 0.8 YdI= 400G = 500Exports (EX) = 200Imports (IM) = 0.1 YdAutonomous taxes (T) =…

Q: Briefly discuss the following concepts iv. Government expenditure multiplier v. Potential output

A: Economics is related to the production, distribution, and consumption of goods and services.

Q: In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of…

A: Multiplier shows the change in investment due to change in income , so here we calculate the value…

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: The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The…

A:

Q: Suppose the following table shows the components of aggregate expenditure for an economy when…

A: Disposable Income is defined as the amount of money which a household or an individual decides to…

Q: What do you mean by multiplier

A: In macro economics, increase in final income arising from an injection of new demand is with…