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

Author Question: Use the aggregate expenditures model and assume an economy is in equilibrium at 6 trillion which is ... (Read 59 times)

Jkov05

  • Hero Member
  • *****
  • Posts: 556
on: Jun 30, 2018
Use the aggregate expenditures model and assume an economy is in equilibrium at 6 trillion which is 500 billion above full-employment GDP. If the marginal propensity to consume (MPC) is 0.75, full-employment GDP can be reached if government spending:
 a. decreases by 75 billion.
  b. decreases by 125 billion.
  c. decreases by 500 billion.
  d. is held constant.

Question 2

Most commercial banks belong to the Federal Reserve System.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

macybarnes

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

False


Jkov05

  • Hero Member
  • *****
  • Posts: 556
Reply #2 on: Jun 30, 2018
Thank you :)


macybarnes

  • Sr. Member
  • ****
  • Posts: 312
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

The wild radish, Raphanus sativus, has become a model for studying the mating behaviour of plants. The wild radish, Raphanus sativus, has become a model for studying the mating behaviour of plants.
A model for voltage-gating in the channel A model for voltage-gating in the channel
Binding change model for ATP synthase Binding change model for ATP synthase
A model for formation of a minimal preinitiation complex (PIC) for pol II on a TATA promoter A model for formation of a minimal preinitiation complex (PIC) for pol II on a TATA promoter
A model of the E. coli glutaminyl tRNA synthetase coupled with its tRNA and ATP A model of the E. coli glutaminyl tRNA synthetase coupled with its tRNA and ATP
Lac repressor protein binding. The crystal structural model of Lac repressor binding at lacO Lac repressor protein binding. The crystal structural model of Lac repressor binding at lacO
Video: Carbohydrate digestion (brush border enzymes, end products) & Carb absorption (fructose, galactose)

For a complete list of videos, visit our video library