IH Pu-GI-Oh! |FANDOM anime online, En 0 semenoai_SUMMER18July 25-26 The Aggregat
ID: 2440365 • Letter: I
Question
IH Pu-GI-Oh! |FANDOM anime online, En 0 semenoai_SUMMER18July 25-26 The Aggregate Expenditures Model and Changes in Equilibrium GDP Question 1 Not yet answered Points out of 10.00 P Flag question Assume the consumption schedule is given by the following equation: C-40 + 0.8Y, where C is consumption and Y Is gross domestic product. The multiplier for this economy is Select one: a. 3 ob. 4 d. 10 Question 2 P Flag question Not yet answered Points out of 10.00 If a multiplier in an economy is 5, a s20 billion increase in net exports will Select one: O a. increase GDP by $100 billion O b. reduce GDP by $4 billion O c. decrease GDP by $100 billion O d. increase GDP by $20 billionExplanation / Answer
Answer 1: Option C is correct. The multiplier of an Economy
Multiplier = 1/1-MPC = 1/1-0.8 = 1/0.2 = 5
Answer 2 : Option A is correct. As it shows that there is an increase in the real GDP $100.
Change in real GDP= Multiplier* Change in injection
Change in real GDP = 5*$20 = $100
Answer 3: Option B is correct. As it shows that as consumer has been changed it's preference and it has been affected that export in the US country has been increased which resulted in the increment in the export value there is a decrease in the real GDP level of output.