# What is the size of the multiplier c if instead gdp

• 16
• 88% (60) 53 out of 60 people found this document helpful

This preview shows page 3 - 6 out of 16 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 27 / Exercise 27-14
Intermediate Financial Management
Brigham/Daves
Expert Verified
b. What is the size of the multiplier? __________c. If, instead, GDP and consumption both rose by \$18 billion in the second round, what would have been the size of the multiplier? _______-
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 27 / Exercise 27-14
Intermediate Financial Management
Brigham/Daves
Expert Verified
ECONOMICS CHAPTER 29
3.The magnitude of the drop in real GDP that will occur when aggregate expenditures fall depends on the
4.A recessionary expenditure gap is the amount by which aggregate expenditures at the full employment
5.A depression abroad will tend to ____________ our exports, which in turn will ____________ net exports, which in turn will ____________ equilibrium real GDP.
6.Shown below is the aggregate expenditures model composed of consumption and investment spending for a closed economy. Show the effect of a \$500 addition in government spending.Instructions:Click and drag on the expenditure line to move it to the correct position given the \$500 additio Looking at your graph, determine whether equilibrium GDP has increased, decreased, or stayed the same given the size of the government purchases that you selected.Equilibrium GDP has INCREASED by _750\$ in government spending.7.The economy’s current level of equilibrium GDP is \$780 billion. The full-employment level of GDP is \$800 billion. The multiplier is 4. Given those facts, we know that the economy faces RECESSIONARY expenditure gap of 5 BILLION
8.Assuming the level of investment is \$20 billion and independent of the level of total output, complete the following table and determine the equilibrium levels of output and employment in this private closedeconomy. Instructions:In the table below, enter your answers in the gray shaded cells as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front
b. What are the sizes of the MPC and MPS?Instructions: Round your answers to 1 decimal place.