D. .75 17.if autonom ous investment increase by 20 billion dollars and MPC is 80
ID: 1173581 • Letter: D
Question
D. .75 17.if autonom ous investment increase by 20 billion dollars and MPC is 80, real GDP A. $20 billion B. $80 billion ?. S 50 billion D. $100 billion will increase by Co Price Quantity supplied Quantity demanded S10 100 Iso 190 295 275 12 13 14 15 245 265 180 135 18.Given the above data, what is the equilibrium price? A. $13 B. 15 C. 14 D. 10 19.Given the above data, how large a shortage would exist if government sat a price ceiling of $10 A. 95 B. 125 C. 60 D. 65 E. 195 20.Given the above data, how large a surplus would exist if government sat a price ceiling of $15 A. 195 B. 125 C. 60 D. 130 E. 65 Based on the following figures, Consumption Depreciation Retained earnings Gross investment Imports $200 billion 20 12 40 70Explanation / Answer
17) Change in Y(national income)=1/1-MPC multiplied by change in investment.
Here MPC is .8,autonomous investment is 20 million dollar
Therefore Y=1/1-.8 multiplied by 20
Y=5 multiplied by 20=100
therefore answer here is D) $100billion
18) Equilibrium price is A) $ 13 Where quantity demanded is equal to quantity supplied.
19)Answer is E) 195 because quantity demanded is 295 and quantity supplied is 100,therefore 295 minus 100 is 195.
20) Answer is D) 130 because quantity supplied is 265 minus quantity demanded is 135. Therefore answer is 130
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