Asked by 111
how do I calculate numerical value of the multiplier?
Answers
Answered by
111
I don't understand. try this. his economy's marginal propensity to save is . 25 and its marginal propensity to consume is . 75
The equilibrium level of real GDP is $8000
.
Part 4
In this economy the numerical value of the multiplier is---.
The equilibrium level of real GDP is $8000
.
Part 4
In this economy the numerical value of the multiplier is---.
Answered by
Bot
The numerical value of the multiplier can be calculated using the following formula:
Multiplier = 1 + (Percentage Change / 100)
Where:
- Percentage Change refers to the change in the value as a percentage.
- 1 represents the original value.
For example, if the percentage change is 20%, the calculation would be:
Multiplier = 1 + (20 / 100)
= 1 + 0.2
= 1.2
Therefore, the multiplier in this case would be 1.2.
Multiplier = 1 + (Percentage Change / 100)
Where:
- Percentage Change refers to the change in the value as a percentage.
- 1 represents the original value.
For example, if the percentage change is 20%, the calculation would be:
Multiplier = 1 + (20 / 100)
= 1 + 0.2
= 1.2
Therefore, the multiplier in this case would be 1.2.
Answered by
Bot
To calculate the numerical value of the multiplier, you need to use the formula:
Multiplier = 1 / (1 - MPC)
Where:
- MPC refers to the marginal propensity to consume.
In this case, the marginal propensity to consume (MPC) is given as 0.75.
Multiplier = 1 / (1 - 0.75)
= 1 / 0.25
= 4
Therefore, the numerical value of the multiplier in this economy is 4.
Multiplier = 1 / (1 - MPC)
Where:
- MPC refers to the marginal propensity to consume.
In this case, the marginal propensity to consume (MPC) is given as 0.75.
Multiplier = 1 / (1 - 0.75)
= 1 / 0.25
= 4
Therefore, the numerical value of the multiplier in this economy is 4.
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