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malfutka [58]
3 years ago
9

Suppose that the level of GDP increased by $100 billion in a private closed economy where the marginal propensity to consume is

0.5. Aggregate expenditures must have increased by $5 billion. $100 billion. $50 billion. $500 billion.
Business
1 answer:
____ [38]3 years ago
3 0

Answer:

$50 billion

Explanation:

To find the change in aggregate expenditures, we need to find the change in consumption. For this, we will use the marginal propensity to consume formula:

MPC = ΔC/ΔY

Where:

MPC = Marginal propensity to consume

ΔC = Change in consumption

ΔY = Change in output (GDP)

We know that out MPC is 0.5, and our ΔY is $billion. We plug these amounts into the formula:

0.5 = ΔC / 100 billion

And we rearrange the equation to solve for ΔC

ΔC = $ 100 billion x 0.5

ΔC = $50 billion

So the change in consumption is $50 billion, which is also the change in aggregate expenditure.

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Eddi Din [679]

<u>Answer:</u> Option B

<u>Explanation:</u>

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5 0
4 years ago
From the list choose the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed o
qwelly [4]

Answer:

Matching with the Best Word, Phrase, Name, etc:

1.        J.  Affirmative action

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4.       C.  May increase demand for unionized labor

5.       L.  Relations Act of 1935. A law granting workers the right to unionize

6.       G.  Companies in many states could legally refuse to hire a black worker regardless of the credentials or experience of that worker supplied of labor and lower quantity demanded of labor

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8.       I.  Lead to a decline of labor unions in the United States

9.       K.  Lead to a decline of labor unions in the United States

10.      D.  A law requiring companies to pay equal wage to all their workers regardless of race, age or sex

Explanation:

The DREAM Act, Relations Act of 1935, Equal Pay Act of 1963, Civil Rights Act of 1964, and Affirmative action are some of the government-sponsored programs to ensure that some level of equity applies to individual cases.

 

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Answer:

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We simply multiplied the sales revenue with the estimated percentage given in the question so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

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Ray Of Light [21]
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3 years ago
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vlada-n [284]
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