« previous next »

Author Question: In the simple Keynesian model, if there is an autonomous investment falls by 20 billion and the MPC ... (Read 67 times)

Jkov05

  • Hero Member
  • *****
  • Posts: 556
on: Jun 30, 2018
In the simple Keynesian model, if there is an autonomous investment falls by 20 billion and the MPC (b) is 0.60, the equilibrium income level will increase by
 
  a. 13.3 billion.
  b. 20 billion.
  c. 50 billion.
  d. 100 billion.

Question 2

In general terms describe trends in the inflation rate, considering the period since 1953 . How are these trends related to movements in the inflation rate over this period?
 
  What will be an ideal response?


Ahernandez18

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Trend inflation rose steadily in the 1950s and 1960s, then rose dramatically during the 1970s. Beginning in the early 1980s, inflation fell precipitously until 1987, then has remained relatively constant around 2 since.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

heart model front heart model front
Model Organism Neurospora Model Organism Neurospora
The human integration pyramid care model The human integration pyramid care model
Lock and Key Model Lock and Key Model
Demographic transition model for changes in population growth rates and sizes, correlated with long- Demographic transition model for changes in population growth rates and sizes, correlated with long-
The orange ball is a model of an HPV16 virus The orange ball is a model of an HPV16 virus
Video: Embryonic development - Weeks 5 to 8

For a complete list of videos, visit our video library