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 47 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

Viet Thy

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

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.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Fluid mosaic model Fluid mosaic model
Bronfenbrenner’s model of the ecological-systems approach to studying development. He suggested that Bronfenbrenner’s model of the ecological-systems approach to studying development. He suggested that
Testing a Simple Hypothesis Testing a Simple Hypothesis
Model of GABA - receptor chloride channel Model of GABA - receptor chloride channel
Which of the following unit factors is not related to a 0.100 M NaBr solution? A Which of the following unit factors is not related to a 0.100 M NaBr solution? A
Which of the following is not a unit factor related to a 15.0% aqueous solution Which of the following is not a unit factor related to a 15.0% aqueous solution
Video: Stroke volume

For a complete list of videos, visit our video library