Ask Question
BusinessBusiness
4 January, 07:09

The marginal propensity to consume is 0.75 and the economy is operating at full-employment real GDP at $510 billion. If a $20 billion personal consumption increase is matched by an equal increase in personal taxes, long-run real GDP will

+4
Answers (2)
  1. 4 January, 07:16
    0
    Long run real GDP will remain unchanged.

    Explanation:

    The increase in personal taxes (-$20 billion) would offset any increase in real GDP generated by the increase in private consumption ($20 billion). Nominal GDP can be affected and increase by $20 billion, but the effect would be given by an increase in general price level (inflation), not by an increase in real money.
  2. 4 January, 07:20
    0
    woiejjiikr

    ididjkr

    riririrjr if ididd wo I am not able to do we
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The marginal propensity to consume is 0.75 and the economy is operating at full-employment real GDP at $510 billion. If a $20 billion ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A GPS satellite is orbiting 15,000 miles above the center of the earth. If the satellite circles the earth in 12 hrs, how fast must it be traveling (mph)
Answers (1)
Does gross profit take into account taxes
Answers (1)
Below is the income statement for Sun Devil Company for the year ending December 31, 20x2: Sales (net) $500,000 Cost of Goods Sold: Beginning Inventory $ 50,000 Purchases 300,000 Goods Available for Sale 350,000 Ending Inventory 40.
Answers (1)
Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $14.8 million, and $39.6 million, respectively. Creative Sound Systems also purchased treasury stock, equipment, and a patent for $20.8 million, $24.
Answers (1)
You have an investment account that started with $3 comma 000 10 years ago and which now has grown to $6 comma 000. a. What annual rate of return have you earned (you have made no additional contributions to the account) ? b.
Answers (1)
New Questions in Business
If a company's current assets increase, what might we assume about their inventory levels? a) It increasedb) It decreasedc) It stayed the samed) We don't have enough information to decide
Answers (1)
What is the effect of import restrictions on prices? a. they cause prices to drop. b. they cause prices to rise. c. they often cause prices to rise steeply and then drop. d. they usually do not have any lasting effect on price?
Answers (1)
Joan is a manufacturing engineer who works on a new product development team along with members from design, engineering, production, purchasing, finance, marketing, and quality assurance.
Answers (2)
Which are costs subtracted from in calculating profit? revenue wages overhead debt
Answers (1)
What type of mortgage has set payments for the life of the loan? A: Varying-rate mortgage B: Fixed-rate mortgage C: Adjustable-rate mortgage D: Index-rate mortgage
Answers (1)
Home » Business » The marginal propensity to consume is 0.75 and the economy is operating at full-employment real GDP at $510 billion. If a $20 billion personal consumption increase is matched by an equal increase in personal taxes, long-run real GDP will
Sign Up Forgot Password?