Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 28, Problem 21APA
(a)
To determine
Identify the aggregate expenditure when the real
(b)
To determine
Identify the process of movement toward the equilibrium expenditure when the real GDP is $200 billion.
(c)
To determine
Identify the process that moves toward equilibrium expenditure when the real GDP is $500 billion.
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Students have asked these similar questions
(Consumption) Use the following data to answer the questions below:
Consumption Real Disposable Income
(billions)
Expenditures
(billions)
Saving
(billions)
$100
$150
$
$200
$200
$300
$250
$400
$300
Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis.
If the consumption function is a straight line, what is its slope?
Fill in the saving column at each level of income. If the saving function is a straight line, what is its slope?
based on macroeconomic theory, one of the following four answers is a correct description of the concept, “expenditure multiplier”. Which one?
A/ It is the idea that decreasing national income affects the equilibrium level of GDP by the same amount of that decrease in income.
B/ It is the concept that increasing national income affects the equilibrium level of GDP on par with the amount of increased income.
C/ The expenditure multiplier is the idea that a given change in spending leads to an equal change in the equilibrium level of GDP.
D/ It is the concept that an increase in spending causes a more than proportionate change in GDP.
National income accounting (GDP calculate) is an essential part of macroeconomics. Analyse the following hypothetical economy and answer the questions that follow:
G = 400, I = 70, X = 300, M =100, autonomous consumption = 100, MPC = 0.6, taxes=50
Calculate the level of national income in this economy
What percentage of disposable income do people save?
Calculate the level of savings
Show that in this economy, injections are indeed equal to withdrawals
Calculate the multiplier?
Using the multiplier in v above, what would be the new level of national income if government spending rose to 500?
Chapter 28 Solutions
Macroeconomics
Ch. 28.1 - Prob. 1RQCh. 28.1 - Prob. 2RQCh. 28.1 - Prob. 3RQCh. 28.2 - Prob. 1RQCh. 28.2 - Prob. 2RQCh. 28.2 - Prob. 3RQCh. 28.2 - Prob. 4RQCh. 28.3 - Prob. 1RQCh. 28.3 - Prob. 2RQCh. 28.3 - Prob. 3RQ
Ch. 28.4 - Prob. 1RQCh. 28.4 - Prob. 2RQCh. 28.4 - Prob. 3RQCh. 28.4 - Prob. 4RQCh. 28 - Prob. 1SPACh. 28 - Prob. 2SPACh. 28 - Prob. 3SPACh. 28 - Prob. 4SPACh. 28 - Prob. 5SPACh. 28 - Prob. 6SPACh. 28 - Prob. 7SPACh. 28 - Prob. 8SPACh. 28 - Prob. 9SPACh. 28 - Prob. 10SPACh. 28 - Prob. 11SPACh. 28 - Prob. 12SPACh. 28 - Prob. 13SPACh. 28 - Prob. 14SPACh. 28 - Prob. 15APACh. 28 - Prob. 16APACh. 28 - Prob. 17APACh. 28 - Prob. 18APACh. 28 - Prob. 19APACh. 28 - Prob. 20APACh. 28 - Prob. 21APACh. 28 - Prob. 22APACh. 28 - Prob. 23APACh. 28 - Prob. 24APACh. 28 - Prob. 25APACh. 28 - Prob. 26APACh. 28 - Prob. 27APACh. 28 - Prob. 28APACh. 28 - Prob. 29APACh. 28 - Prob. 30APACh. 28 - Prob. 31APACh. 28 - Prob. 32APACh. 28 - Prob. 33APACh. 28 - Prob. 34APA
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