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Author Question: Multiplier Effect of Government PurchasesIf an increase in government spending of $400 billion ... (Read 723 times)

gboileau

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on: Nov 23, 2022

Question 1

Multiplier Effects

Suppose that investment spending decreases by $50 million. If the marginal propensity to consume (MPC) is 0.55, then what is the change in real GDP? (Round to the nearest hundredth when appropriate.)
◦ -$0.01 million
◦ -$27.5 million
◦ -$111.11 million
◦ -$90.91 million

Question 2

Multiplier Effect of Government Purchases

If an increase in government spending of $400 billion results in a $2.0 trillion increase in equilibrium real GDP, then the government purchases multiplier is ________. (Round to the nearest hundredth when appropriate.)
◦ 400
◦ 800
◦ 200
◦ 0.5
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by gboileau on Nov 23, 2022

kyledifference

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Reply #1 on: Nov 23, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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gboileau

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Reply 2 on: Nov 23, 2022
Thanks for the timely response, appreciate it

matt95

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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