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Leno4ka [110]
3 years ago
8

1. Calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the MPC is 0.75.

Business
1 answer:
Mars2501 [29]3 years ago
6 0

Answer: 860

Explanation:

The gross domestic product is the value of the goods and services which are produced in a particular country from the year.

In this question, we are informed that we should calculate GDP loss if equilibrium level of GDP is $10,000, unemployment rate 9.8%, and the marginal prospensity to consume is 0.75.

The GDP loss will be calculated as:

= [(0.75 × 9.8)/100 × 10,000] + 125

= [(7.35/100) × 10000] + 125

= [(0.0735) × 10000] + 125

= 735 + 125

= 860

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Answer:

c. Decreases by 4.5%

Explanation:

Calculation for What is the percentage change in the PV

First step is to calculate the present value when r is 5%

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Second step is to calculate present value when r is 10%

PV = 100 / (1 + 10%)^1

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Percentage change in the PV = - 4.55% (Decrease)

Therefore the Percentage change in the PV Decreases by 4.5%

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Joe Chin bought a house for $180,000. He made a 20% down payment. Joe secured a loan for the balance of the purchase price at 6.
Ivan

Answer:

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Explanation:

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