What is the effect on real GDP of a $175 billion change in planned investment if the MPC is 0.50? $ nothing billion. (Enter your response rounded to the nearest whole number.)

$350 billion

Explanation:

The computation of the effect on real GDP is shown below:-

As we know that

Multiplier = 1 ÷ (1 - MPC)

= 1 ÷ 1-0.50

= 2

Now

Change in GDP = Multiplier × Change in investment

= 2 × 175

= $350 billion

Therefore for computing the Change in GDP we simply applied the above formula i.e of Multiplier and the change in gross domestic product (GDP)

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.