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 141 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
Excellent

gcook

  • Member
  • Posts: 343
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

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?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Juan Gris, The Table. Juan Gris, The Table.
Distance from Initial Change in Membrane Potential vs. Voltage Change Relative to Initial Change Distance from Initial Change in Membrane Potential vs. Voltage Change Relative to Initial Change
Examples of Basic-Level, Subordinate, and Superordinate Concepts Examples of Basic-Level, Subordinate, and Superordinate Concepts
Clear the inguinal catchment area. Face the side of the table at recipient’s waist. Place your ... Clear the inguinal catchment area. Face the side of the table at recipient’s waist. Place your ...
Who is the “real” Beyoncé—doting mother or Sasha Fierce? Who is the “real” Beyoncé—doting mother or Sasha Fierce?
table table
Video: Digestive chemicals - types & enzymes

For a complete list of videos, visit our video library