This topic contains a solution. Click here to go to the answer

Author Question: How do we calculate the effects of real GDP on consumption expenditure and imports by using the ... (Read 190 times)

darbym82

  • Hero Member
  • *****
  • Posts: 570
How do we calculate the effects of real GDP on consumption expenditure and imports by using the marginal propensity to consume and the marginal propensity to import?
 
  What will be an ideal response?

Question 2

Refer to Figure 7-2. Marginal social benefit is represented by which curve?
 
  A) Supply
  B) D2
  C) D1
  D) All of the above represent marginal social benefit.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sailorcrescent

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

The effects of real GDP on consumption expenditure and imports are determined respectively by the marginal propensity to consume and the marginal propensity to import. In particular, the effect of a change in real GDP on consumption expenditure equals the marginal propensity to consume multiplied by the change in disposable income. Similarly, the effect of a change in real GDP on imports equals the marginal propensity to import multiplied by the change in real GDP.

Answer to Question 2

B




darbym82

  • Member
  • Posts: 570
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

For a complete list of videos, visit our video library