This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the marginal propensity to save is equal to 0.5 in the simple Keynesian model, then a 10-unit ... (Read 13 times)

cherise1989

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
If the marginal propensity to save is equal to 0.5 in the simple Keynesian model, then a 10-unit increase in government spending will cause output to rise by
 
  a. 5 units.
  b. 10 units.
  c. 20 units.
  d. 25 units.
  e. 40 units.

Question 2

Briefly explain why gross domestic product is not a welfare measure.
 
  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

SomethingSomething

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Gross domestic product measures production of goods and services. It is neither a measure of welfare nor a measure of material well-being. GDP does not give any weight to leisure and it also fails to subtract some welfare costs of production.


cherise1989

  • Member
  • Posts: 555
Reply 2 on: Jun 30, 2018
Excellent

isabelt_18

  • Member
  • Posts: 342
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

A structural gene as a transcriptional unit A structural gene as a transcriptional unit
Simple transposable elements and their mechanism of transposition Simple transposable elements and their mechanism of transposition
Model for evidence-based clinical decision making. Model for evidence-based clinical decision making.
Reaction coordinate diagram for a simple enzyme catalyzed reaction Reaction coordinate diagram for a simple enzyme catalyzed reaction
Binding change model for ATP synthase Binding change model for ATP synthase
A model for initiation of E. coli DNA replication at oric A model for initiation of E. coli DNA replication at oric
Video: Rh blood type and complications during pregnancy & Fertilization

For a complete list of videos, visit our video library