Macroeconomics help.?

If the marginal propensity to consume is 0.75, by how much will an increase in planned investment spending of $400 billion shift up the aggregate expenditure line? By how much will it increase equilibrium real GDP? 1 Answer ? Favorite Answer It will increase GDP or shift to the right=1/1-0.75 x 400b=$1,600b.

Crowding out occurs when government:?

A- Deficits increase the interest rate; this reduces investment spending B- Surpluses increase the interest rate’ this reduces investment spending C- Deficits decrease the interest rate’ this reduces investment spending D- Surpluses decrease the interest rate’ this reduces investment spending 1 Answer ? Favorite Answer Its going to be A (T-G) < 0 will imply … Read more

When will the us economy collapse?

6 ✅ Answers ? Favorite Answer There are no signs of economic collapse of USA. Although National and Foreign debts have been rising but the problems of inflation and recessions have been handled in such a way that the economy has not weakened. According to economists, during past two centuries the U.S.A. has encountered 32 … Read more

In the long run Firm A incurs total costs of $900 when output is 30 units and $1,200 when output is 40 units.?

In the long run Firm A incurs total costs of $900 when output is 30 units and $1,200 when output is 40 units. Firm A exhibits: a. diseconomies of scale because total cost is rising as output rises. b. constant returns to scale because average total cost is constant as output rises. c. diseconomies of … Read more