mjb08a_m101_RETURNED - National Income Determination GDP(Y...

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National Income Determination GDP (Y) Consumption (C) Investment (I) Net Exports (X - IM) Total Expenditures 4,800 3,000 900 1,300 (100) 5,100 5,200 3,300 900 1,300 (100) 5,400 5,600 3,600 900 1,300 (100) 5,700 6,000 3,900 900 1,300 (100) 6,000 6,400 4,200 900 1,300 (100) 6,300 6,800 4,500 900 1,300 (100) 6,600 7,200 4,800 900 1,300 (100) 6,900 27,300 6,300 9,100 (700) 42,000 Government Purchases (G) 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 2,500 3,500 4,500 5,500 6,500 7,500 National Income Determination Column B Column P Column Q Column R Column A Real GDP Real Expenditures
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Marginal Propensity to Consume and the Multiplier Investment $1,000,000.00 MPC 0.10 Multiplier 1.11 Round # Spending in this round Cumulative Spending 1 $1,000,000.00 $1,000,000.00 2 $100,000.00 $1,100,000.00 3 $10,000.00 $1,110,000.00 4 $1,000.00 $1,111,000.00 5 $100.00 $1,111,100.00 6 $10.00 $1,111,110.00 7 $1.00 $1,111,111.00 8 $0.10 $1,111,111.10 9 $0.01 $1,111,111.11 10 $0.00 $1,111,111.11 11 $0.00 $1,111,111.11 12 $0.00 $1,111,111.11 13 $0.00 $1,111,111.11
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In Class Exercise a. Create the Original Expenditure Schedule Income Consumption Investment Gov't Purchases Net Exports Total Expenditure $4,000 $3,420 $340 $220 $40 $4,020 $4,100 $3,510 $340 $220 $40 $4,110 $4,200 $3,600 $340 $220 $40 $4,200 $4,300 $3,690 $340 $220 $40 $4,290 $4,400 $3,780 $340 $220 $40 $4,380 b. Highlight the equlibrium point in a red c. Revise Expenditure Schedule and increase investment up by $20 Income Consumption Investment
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