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 45 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
Excellent

amandalm

  • Member
  • Posts: 306
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

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?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

dinosaurs were real dinosaurs were real
The bore and stroke of pistons are used to calculate an engine’s displacement. The bore and stroke of pistons are used to calculate an engine’s displacement.
The induced conformational change in hexokinase The induced conformational change in hexokinase
Observed change in surface temperature from 1901 to 2012 Observed change in surface temperature from 1901 to 2012
Ice cores as indicators of environmental change Ice cores as indicators of environmental change
Geoengineering is not a solution to climate change Geoengineering is not a solution to climate change
Video: Neural regulation of mechanical digestion- CNS voluntary, ANS & ENS controlled involuntary movements

For a complete list of videos, visit our video library