Assume that the MPS in an economy is equal to 0.25. The multiplier must be equal to 4.00. You have established that the multiplier is 4.00. Now assume that autonomous real consumption is $4 trillion. There is no other autonomous spending presently taking place economy. At what level is consumption equal to real GDP? trillion. (Round your answer to two decimal places) You have established that the multiplier is 4.00 and that autonomous real consumption is $4 trillion. There is autonomous investment of $4 trillion and autonomous net exports $11 trillion. At what level are expenditures equal to real GDP? $ trillion. (Round your answer to two decimal places)

Assume that the MPS in an economy is equal to 0.25. The multiplier must be equal to 4.00. You have established that the multiplier is 4.00. Now assume that autonomous real consumption is $4 trillion. There is no other autonomous spending presently taking place economy. At what level is consumption equal to real GDP? trillion. (Round your answer to two decimal places) You have established that the multiplier is 4.00 and that autonomous real consumption is $4 trillion. There is autonomous investment of $4 trillion and autonomous net exports $11 trillion. At what level are expenditures equal to real GDP? $ trillion. (Round your answer to two decimal places)

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter19: The Keynesian Model In Action

Section: Chapter Questions

Problem 5SQP

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Consider an economy of a nation that has the following aggregate expenditure. 1300- 1040- 780- 520- AE 260 Y = AE 260 390 520 650 780 9ło 1040 1170 1300 130 Real GDP Note: Please make sure your final answers are accurate to 2 decimal places. a) What is the value of the equilibrium national real GDP? Equilibrium = $0 b) What is the value of the multiplier? Multiplier = 0 c) If the autonomous consumption were to decrease by $520, what would be the new value of equilibrium real GDP? New equilibrium = S0 Aggregate expenditures
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stlon 16 Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 2 billion, and the marginal propensity to consume on Troll Island is equal to 0.6. What is the change in Troll Island's real GDP after the increase in AE? Enter your answer in billions of dollars, rounded to one place after the decimal. For example, an answer of $2,500,000 should be entered as 2.5. %24 billion
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