MACROECONOMICS - Multiplier question a. If the value of A is 65 and the multipli
ID: 1142130 • Letter: M
Question
MACROECONOMICS - Multiplier question
a. If the value of A is 65 and the multiplier is 2, then the value of Y2 is $___________ . Round your answer to the nearest whole dollar.
b. If the value of Y2 is 680 and the value of A is 60, then the value of the multiplier is___________ . Round your answer to 2 decimal places.
c. Given AE1, if the value of the multiplier is 4, then the value of B is $____________ . Round your answer to the nearest whole dollar.
PLEASE SHOW YOUR WORK
Figure below shows the economy of Itassuna. ,Y = AE Y2 800Explanation / Answer
(a)
Change in Y = Value of A x Multiplier = 65 x 2 = 130
Y2 = 800 - Change in Y = 800 - 130 = $670
(b)
Multiplier = Change in Y / Value of A = $(800 - 680) / $60 = $120 / $60 = 2.00
(c)
Value of B = Value of equilibrium Y / Multiplier = $800 / 4 = $200
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