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

Author Question: Based on the table above, a. What is the equilibrium price level and real GDP? b. If potential ... (Read 104 times)

nramada

  • Hero Member
  • *****
  • Posts: 580
on: Jun 29, 2018
Based on the table above,
 
  a. What is the equilibrium price level and real GDP?
  b. If potential GDP is 11.0 trillion, what does that imply about the economy's level of employment?
  c. If potential GDP is 9.0 trillion, what does that imply about the economy's level of employment?

Question 2

What is the marginal propensity to consume? Can the marginal propensity to consume be greater than 1?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joanwhite

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jun 29, 2018
Answer to Question 1

a. The equilibrium price level is 105; the equilibrium real GDP is 10.0 trillion.
b. If potential GDP is 11.0 trillion, then the economy is at an equilibrium that is a below full-employment equilibrium with a recessionary ga

Answer to Question 2

The marginal propensity to consume is the change in consumption expenditure divided by the change in disposable income that brought it about. The marginal propensity to consume cannot be greater than 1. Indeed, it is less than 1 because people save part of an increase in disposable income.


nramada

  • Member
  • Posts: 580
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

smrtceo

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Potential Constitutional Challenges to Loitering, Panhandling, and Sit-Lie Laws Potential Constitutional Challenges to Loitering, Panhandling, and Sit-Lie Laws
Periodic Table Periodic Table
Sea Level during the Last Glaciation Sea Level during the Last Glaciation
Likelihood of Developing Type 2 Diabetes Mellitus Based on BMI Likelihood of Developing Type 2 Diabetes Mellitus Based on BMI
Upper-Level Maps Upper-Level Maps
Mobilize the rib cage. Redrape to cover the chest, and stand to one side of the table. Place your ... Mobilize the rib cage. Redrape to cover the chest, and stand to one side of the table. Place your ...
Video: Mendel's Principles of Dominance, Segregation and Independent Assortment

For a complete list of videos, visit our video library