1. What is the relationship
between the mpc , the mpc d and the mpw ?
2. Why will the short-run
consumption function be different from the long-run consumption function?
3. Construct a table similar to only
this time assume that the mpcd is 3/4. Show that national income will
increase by _640 million.
4. Assume that the multiplier has
a value of 3. Now assume that the government decides to increase aggregate demand
in an attempt to reduce unemployment. It raises government expenditure by _100 million
with no increase in taxes. Firms, anticipating a rise in their sales, increase
1. What is the relationship
between the mpc , the mpc d and the mpw ?
2. Why will the short-run
consumption function be different from the long-run consumption function?
3. Construct a table similar to only
this time assume that the mpcd is 3/4. Show that national income will
increase by _640 million.
4. Assume that the multiplier has
a value of 3. Now assume that the government decides to increase aggregate demand
in an attempt to reduce unemployment. It raises government expenditure by _100 million
with no increase in taxes. Firms, anticipating a rise in their sales, increase
investment by _200 million, of which _50 million consists of purchases of foreign machinery. How much will
national income rise? (Assume ceteris paribus .)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more