PLEASE HELP! URGENT!!! 5. Assume the current equilibrium level of income is $200 billion as compared to the full-employm
Posted: Sun Jul 03, 2022 1:06 pm
PLEASE HELP! URGENT!!!
5. Assume the current equilibrium level of income is $200billion as compared to the full-employment income level of $240billion. If the MPC is 0.6, what change in aggregate expendituresis needed to achieve full employment?
Multiple Choice
a decrease of $24 billion
an increase of $16 billion
a decrease of $16 billion
an increase of $24 billion
If APC = .6 and MPC = .7, the immediate impact of an increase inpersonal taxes of $20 will be to:
Multiple Choice
decrease consumption by $14.
decrease consumption by $12.
increase consumption by $14.
have no effect on consumption.
If the equation C = 60 + .2Y, where C is consumption and Yis disposable income, were graphed:
Multiple Choice
the vertical intercept would be +60 and the slope would be+0.2
the vertical intercept would be +20 and the slope would be+.6.
the vertical intercept would be negative, but consumption wouldincrease as disposable income rises.
it would reveal an inverse relationship between consumption anddisposable income.
5. Assume the current equilibrium level of income is $200billion as compared to the full-employment income level of $240billion. If the MPC is 0.6, what change in aggregate expendituresis needed to achieve full employment?
Multiple Choice
a decrease of $24 billion
an increase of $16 billion
a decrease of $16 billion
an increase of $24 billion
If APC = .6 and MPC = .7, the immediate impact of an increase inpersonal taxes of $20 will be to:
Multiple Choice
decrease consumption by $14.
decrease consumption by $12.
increase consumption by $14.
have no effect on consumption.
If the equation C = 60 + .2Y, where C is consumption and Yis disposable income, were graphed:
Multiple Choice
the vertical intercept would be +60 and the slope would be+0.2
the vertical intercept would be +20 and the slope would be+.6.
the vertical intercept would be negative, but consumption wouldincrease as disposable income rises.
it would reveal an inverse relationship between consumption anddisposable income.