« previous next »

Author Question: In the simple Keynesian model, if there is an autonomous investment falls by 20 billion and the MPC ... (Read 48 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?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

The use of a simple dot matrix The use of a simple dot matrix
A simple motif, the β-α-β loop A simple motif, the β-α-β loop
Simple amplification of 1kb DNA fragments by polymerase chain reaction. Simple amplification of 1kb DNA fragments by polymerase chain reaction.
The Meselson–Radding model for homologous recombination The Meselson–Radding model for homologous recombination
The operon model, as proposed in 1961 by Jacob and Monod The operon model, as proposed in 1961 by Jacob and Monod
A Simple Demonstration of Osmosis A Simple Demonstration of Osmosis
Video: Properties of macromolecules (Explained with No Audio)

For a complete list of videos, visit our video library