! plz solved all parts for a like.. Use the following information to answerquestion 1 - 10 .C = 3000 + 0.6Y| = 1500G = 2500X = 1200IM = 0.2YT = 10%1) The equilibrium GDP is A) 8200 B) 10000C) 13666 D) 205002) The marginal propensity to consume is A)0.7 B) 0.6 6 C) 0. 6 D) 0.43) The marginal response of consumption isA) 0.7 B) 0.66 C) 0.6 D) 0.44) Marginal propensity to import is A) 0.4 B)О.3 С) 0.2 D) 0.15) Marginal propensity to spend is A) 0.8 B)0.6 C) 0.4 D) 0.26) The simple multiplier is A) 3 B) 2.5 C) 1.67D) 1.5 27) The autonomous private consumptionspending is A) 3000 B) 4000 C) 4500 D)57008) If the income tax increases by 5%, andthe MPC stays the same, then the newsimple multiplier is A) 2.5 B) 1.87 C) 1.58 D)1.59) If the government spending decreases by500, then the new equilibrium GDP is A)10000 B) 12833 C) 13166 D) 1366610) If exports increases to 1700, then thenew equilibrium GDP is A) 13166 B) 13666 C)14166 D) 14500

1.) The equilibrium level of GDP is GDP = C + I + G + X…

Answered: Use the following information to answer…

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

Given the following information, answer the question. Autonomous consumption = R100 million Investment spending = R300 million Government spending = R200 million Taxes = R60 million Marginal propensity to consume = ¾ The equilibrium level of output and income is equal to ______. Select one: A. R2 160 million B. R2 580 million C. R2 640 million D. R2 220 million
The Wilson family has a disposable income of $70,000 annually. Currently, the Wilson family spends 80% of new disposable income on consumption. Assume that their marginal propensity to consume is 0.8 and that their autonomous consumption spending is equal to $10,000. What is the amount of the Wilson family's annual consumer spending?
Suppose the marginal propensity to consume equals 0.7 (i.e., c1 = 0.7). Given this information, which of the following events will cause the largest increase in output? Select one: A. G increases by 250 B. T decreases by 250 C. I increases by 200 D. G increases by 250 and T increases by 250
If Andrea’s disposable income increases from $600 to $700 and her level of personal consumption expenditures increases from $450 to $475. You may conclude that her marginal propensity to consume is: Group of answer choices 0.5 0.1 0.75 0.25
The marginal propensity to consume for this economy is …………. if income rises from $9000 to $10000 and consumption is rises from $750 to $1500 0.650. 0.750. 0.650 or 0.664, depending on whether income is $10,000 or $11,000. 0.800.
Suppose an economy has a marginal propensity to consume of 0.66 along with $38,039 consumption taking place when disposable income is $44,238. What would disposable income be if you observe a consumption level of $45,239? Round your answer to two digits after the decimal.
Find equilibrium output when the following apply: Autonomous consumption = $1,000 Marginal propensity to consume = 0.75 Taxes = $800 Transfers = $300 Planned investment = $800 Government purchases = $500 Net exports = $0. a)$7,700 b)$1,925 c)$2,566.7 d)$1,800 e)$7,200
these bottom two are solved I am just struggling with how to graph the consumption function and the breakeven condition for this problem and to Point out the income and consumption values relevant for these problems: 3. The marginal propensity to consume (MPC) is 0.75, which means that households spend 75% of each additional dollar of income. The starvation-level consumption is 6, which means that households will consume at least 6 dollars, regardless of their income. Therefore, the amount that households will save can be found by subtracting their minimum consumption level from their gross income, multiplying the difference by the MPC, and subtracting the lump-sum tax: Savings = (1 - MPC) * (Gross Income - Starvation-level Consumption) - Lump-sum Tax Savings = (1 - 0.75) * (40 - 6) - 10 Savings = 0.25 * 34 - 10 Savings = 1.5 Therefore, households will save $1.5. 3. a) How should the lump-sum income tax change to allow households to save 3? To allow households to save…
The average propensity to consume refers to the Group of answer choices percentage of income spent for current consumption expenditures for the minimum necessities of life percentage of income saved dollars of income spent for current consumption fact that people with higher incomes spend more for the necessities of life
The marginal propensity to save is 0.15, tthe marginal propensity to consume: (A) is 1.15. (B) is 0.85. (C) is 0.15. (D) cannot be determined by the given information.
can you please answer strating form D to F Given the information below, answer the questions that follow. C = $40 + 0.8Y I = $30 G = $40 X – M = -$10 a) What is the equilibrium GDP? Explain why $550 is not the equilibrium. b) What is the marginal propensity to consume (MPC) in this question? (Explain) c) What is the multiplier in this question and explain the significance of the multiplier? (Show all work) d) Assuming that the full employment level of output is $600, what kind of gap exists and how large is it? Explain e) If transfer payments increased by $10 and the price level did not change, what would the new equilibrium be? (Show all work) f) How would your answer to part (e) change if the price level did change?
DisposableIncomeYd ConsumptionC $2,000 $2,040 2,100 2,120 2,200 2,200 2,300 2,280 2,400 2,360 Refer to Exhibit 10-3. The marginal propensity to consume (MPC) is ___________?

SEE MORE QUESTIONS

Recommended textbooks for you

Macroeconomics: Principles and Policy (MindTap Co…

Economics

ISBN:

9781305280601

Author:

William J. Baumol, Alan S. Blinder

Publisher:

Cengage Learning