Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition)
18th Edition
ISBN: 9780134004945
Author: Roger LeRoy Miller
Publisher: PEARSON
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Question
Chapter 12, Problem 12P
To determine
- The marginal propensity to save
- The present level of planned investment spending for the present period
- The equilibrium level of real GDP for the present period
- The equilibrium level of saving for the present period
- The resulting change in the equilibrium real GDP, if the planned investment spending for the present period increases by $25 billion. What will be the new equilibrium level of the real GDP if other things, including the price level, remain unchanged
Concept introduction:
Planned investment spending - When firms spend to acquire capital goods and inventories, it is known as planned investment spending.
Marginal propensity to consume - It is the change in consumption that is caused by a change in the income. It is a numerical value representing the amount of income that is consumed.
Marginal propensity to save - It is the change in saving caused due to a change in the income. It is a numerical value representing of the amount of income that is saved.
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Economics Today: The Macro View, Student Value Edition Plus MyLab Economics with Pearson eText --Access Card Package (18th Edition)
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