This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Calculate the multiplier and the change in real GDP. What will be an ideal ... (Read 11 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
Calculate the multiplier and the change in real GDP.
 
  What will be an ideal response?

Question 2

Refer to Figure 2-13. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?
 
  A) neither country B) Costa Rica
  C) Guatemala D) cannot be determined


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

wshriver

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

With no imports and no income taxes, the multiplier equals 1/(1  MPC). So the multiplier is 1/(1  0.8), which is 5.0 Then the 5 billion increase in investment increases real GDP by 5.0  5 billion, which is 25 billion.

Answer to Question 2

A


karateprodigy

  • Member
  • Posts: 550
Reply 2 on: Jun 29, 2018
:D TYSM

ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

dinosaurs were real dinosaurs were real
Religion can promote social change, as was evident in the U.S. civil rights movement. Dr. Martin ... Religion can promote social change, as was evident in the U.S. civil rights movement. Dr. Martin ...
Ogburn's Processes of Social Change Ogburn's Processes of Social Change
Climate change affects organisms and ecosystems Climate change affects organisms and ecosystems
Calculate the physical variables Calculate the physical variables
The TaqMan approach to quantitative real-time PCR (qPCR) The TaqMan approach to quantitative real-time PCR (qPCR)
Video: How does an animal choose what food to eat?

For a complete list of videos, visit our video library