Equations for C, I, G, and NX are given below. If the equilibrium level of GDP is $21,500, what is the marginal propensity to consume?
C = 1,500 + (MPC)Y
I = 1,000
G = 2,000
NX = -200
A) 0.67 B) 0.75 C) 0.8 D) 0.9
C
Economics
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If nominal wage rates increase by 5 percent per year and the price level increases by 3 percent per year, which of the following is correct?
a. Real wages will increase by 2 percent per year. b. Real wages will increase by 3 percent per year. c. Real wages will decrease by 3 percent per year. d. Real wages will decrease by 2 percent per year. e. Real wages will remain constant.
Economics
The slope of the consumption function is called the:
a. autonomous consumption rate. b. marginal consumption rate. c. average propensity to consume. d. marginal propensity to consume.
Economics