Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / THE MULTIPLIER CALCULATING HYPOTHETICAL CHANGES IN GDP Go to the Bureau of Economic Analy...

THE MULTIPLIER CALCULATING HYPOTHETICAL CHANGES IN GDP Go to the Bureau of Economic Analysis at wwwbeagov and select Interactive Data Tables which is listed

THE MULTIPLIER—CALCULATING HYPOTHETICAL CHANGES IN GDP

Go to the Bureau of Economic Analysis at www.bea.gov, and select Interactive Data Tables, which is listed under Publications. On that page, select National Income and Product Accounts. Go to the List of All NIPA Tables and then find Table 1.1.5, which contains the most recent values for nominal GDP = Ca + Ig + G + (X -M). Assume that the MPC is .75 and that, for each of the following, the values of the initial variables are those you just discovered. Determine the new value of GDP if, other things equal,

(a) investment increased by 5 percent,

(b) imports increased by 5 percent while exports increased by 5 percent,

(c) consumption increased by 5 percent, and (d) government spending increased by 5 percent. Which of the changes,

(a) through ( d), caused the greatest change in GDP in absolute dollars?

Apr 30 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions