Tag: MPC

Analyze briefly your graph highlighting periods of recession and expansions, as well as finding the long runeconomic growth rate.

(2 marks) Plot the real GDP for the country over time and add an exponential trend line with its equation, which reflects the potential GDP.

Analyze briefly your graph highlighting periods of recession and expansions, as well as finding the long run economic growth rate.

(2 marks) Use real (or constant prices) household Consumption (C), private investment (I) and your data on real GDP (Y). Plot on the same diagram the following
relationships:
C = a + b*Y
I = m + n*Y
Where (a, b, m, n) are constants to be estimated.

is the marginal propensity to consume (MPC)

(1 mark) Assume anything else is constant, find the multiplier (K) for the chosen econom

Drawing an aggregate expenditure function and altering it based on a given scenario.Determine how changes in one component of aggregate expenditure.

Lesson 7 ConcepTest

In each lesson, you’ll have an opportunity to practice some of the concepts, calculations, or techniques presented in the lesson. This ConcepTest will give you practice with the following:

Drawing an aggregate expenditure function and altering it based on a given scenario

Determine how changes in one component of aggregate expenditure

Calculating the following:

Unplanned changes in inventories

MPC

MPS

The value of the equilibrium real GDP

Autonomous consumption

Multipliers

Procedure

Document (docx).

Work through the problems in the Word document.

Save your work to your computer.