Veronica_x
New member
Whoever can give me the most detailed and accurate answers will have my undying gratitude.
1.Assume that Carl and Wanda each make $5,000. *Each was given a raise of $1,000. *Carl’s spending increased from $4,000 to $4,750. *Wanda’s savings increased from $500 to $600.
I.Carl lives in the Macro Islands. *What is Carl’s MPC? (Show the math)
Carl earns 1,000$ more.
II.Wanda lives in the Micro Islands. *What is Wanda’s MPS? (Show the math)
2.When businesses in the Macro Islands increased investment by $20 million to attract tourists, GDP increased by $50 million. *What is the MPC in the Macro Islands? *Explain how you arrived at your answer.
3.Assume taxes increase by $200 and government spending increases by $200. The marginal propensity to consume is 0.75. Explain how GDP is impacted as a result. (Your answer must include the amount of change in GDP, and you must show how you arrived at your answer.)
4.Calculate the marginal propensity to consume when a decrease in investment of $10 billion causes RGDP to decrease by $50 billion.
1.Assume that Carl and Wanda each make $5,000. *Each was given a raise of $1,000. *Carl’s spending increased from $4,000 to $4,750. *Wanda’s savings increased from $500 to $600.
I.Carl lives in the Macro Islands. *What is Carl’s MPC? (Show the math)
Carl earns 1,000$ more.
II.Wanda lives in the Micro Islands. *What is Wanda’s MPS? (Show the math)
2.When businesses in the Macro Islands increased investment by $20 million to attract tourists, GDP increased by $50 million. *What is the MPC in the Macro Islands? *Explain how you arrived at your answer.
3.Assume taxes increase by $200 and government spending increases by $200. The marginal propensity to consume is 0.75. Explain how GDP is impacted as a result. (Your answer must include the amount of change in GDP, and you must show how you arrived at your answer.)
4.Calculate the marginal propensity to consume when a decrease in investment of $10 billion causes RGDP to decrease by $50 billion.