The answer to this is 1000
A) the marginal propensity to save is the number associated with y which is 0.8
B) the marginal propensity to save is 1-0.8 = 0.2
C) replace y with the 400 and solve: c = 40 + 0.8(400) = $360
D) Average propensity to consume = 360/400 = 0.9
E) 400-360 = $40
F) 40/400 = 0.1
<span>Grapes are a(n) "normal good" with an income elasticity of demand of "0.8". A normal good is a good for which an increase in income results in increased demand, while decreased income results in decreased demand. Thus, we know that the first blank is "normal good" by the definition of a normal good becuase median income fell and demand for grapes fell. The X elasticity of demand is given by (%change in Demand)/(%change in X), where x is any economic variable (income in this case). Thus, to find the elasticity, we divide 12% by 15%. 12%/15%=.08.</span>
Answer:
Reduction in Tax Needed = $ 13.33
Explanation:
Tax Multiplier shows magnitude of change (decrease) in income due to tax change (rise) .
Tax Multiplier = ΔY / ΔT = - MPC / (1- MPC)
Given : Change in Income needed [ΔY] = 40
MPC = 0.75
Putting in formula ;
40 / ΔT = - 0.75 / (1- 0.75)
40 / ΔT = - 0.75 / 0.25
40 / ΔT = - 3
ΔT = - 40/ 3
ΔT = - 13.33
Answer:
$-625.4 billion
$20,494 billion
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
2531.3 - 3,156.7 = $-625.4 billion
GDP = 13,948.5 + 3,650.1 + 3,520.8 - $-625.4 = $20,494 billion
