Transcript Macro Unit 3 - Math Work

Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
1. The government
spending multiplier in
Bartlettland is:
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
1. The government
spending multiplier in
Bartlettland is:
MPC = 100/200 = .5
MPS = 100/200 = .5
1/(1-.5) = 1/.5 = 2
1/.5 = 2
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
2. If there is an increase in
taxes of $700 in
Bartlettland the decrease
in GDP will be:
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
2. If there is an increase in
taxes of $700 in
Bartlettland the decrease
in GDP will be:
-.5/(1-.5) = -.5/.5 = -1
700 x -1 = -$700
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
3. If there is an increase in
investment spending of
$300 and an increase in
taxes of $200, the change
in the GDP will be:
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
3. If there is an increase in
investment spending of
$300 and an increase in
taxes of $200, the change
in the GDP will be:
300 x 2 = 600
200 x -1 = -200
400
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
4. If there is an increase in
government spending of
$1000, the increase in GDP
will be:
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
Bartlettland has the following values for income and
consumption. Use this data to answer the following
questions:
Income
Consumption
4. If there is an increase in
government spending of
$1000, the increase in GDP
will be:
$1000 x 2 - $2000
1000
1200
1400
1600
1800
2000
1200
1300
1400
1500
1600
1700
Mr.
Weiss
Macro Unit 3 Math Work
5. If Bartlett Hawk’s income goes up from $ 700
to $ 850, and his/her level of consumption
expenditures goes up from $ 550 to $ 650, you
may conclude that her/his marginal propensity
to consume is:
Mr.
Weiss
Macro Unit 3 Math Work
5. If Bartlett Hawk’s income goes up from $ 700
to $ 850, and his/her level of consumption
expenditures goes up from $ 550 to $ 650, you
may conclude that her/his marginal propensity
to consume is:
MPC = 100/150 = .67
MPS = 50/150 = .33
Mr.
Weiss
Macro Unit 3 Math Work
6. In the Keynesian Aggregate Expenditure
model, if the MPC is .9 and gross investment
increases by $ 9 billion, equilibrium GDP will
increase by:
Mr.
Weiss
Macro Unit 3 Math Work
6. In the Keynesian Aggregate Expenditure
model, if the MPC is .9 and gross investment
increases by $ 9 billion, equilibrium GDP will
increase by:
MPC
MPS
1/(1-.9) =
1/.1 = 10
1/.1) = 10
9 billion x 10 = 90 billion
Mr.
Weiss
Macro Unit 3 Math Work
7. In the Keynesian Aggregate Expenditure
model, if the MPC is .80 and taxes are reduced
by $ 25 billion, equilibrium GDP will increase by:
Mr.
Weiss
Macro Unit 3 Math Work
7. In the Keynesian Aggregate Expenditure
model, if the MPC is .80 and taxes are reduced
by $ 25 billion, equilibrium GDP will increase by:
MPC
MPS
-.80/(1-.80)
- .80/.20 = - 4 (4)
-.80/.20 = - 4 (4)
4 x 25 billion = $100 billion
Mr.
Weiss
Macro Unit 3 Math Work
8. In the Keynesian Aggregate Expenditure
model, if the MPS is .10 and the government
increases spending by $ 500 billion, equilibrium
GDP will increase by:
Mr.
Weiss
Macro Unit 3 Math Work
8. In the Keynesian Aggregate Expenditure
model, if the MPS is .10 and the government
increases spending by $ 500 billion, equilibrium
GDP will increase by:
MPC
1/(1-.9)
1/.1 = 10
MPS
1/.1 = 10
$ 500 billion x 10 = $ 5 trillion
Mr.
Weiss
Macro Unit 3 Math Work
9. Using the data in this table, what is the APC
and APS at $ 7,000?
DI
C
S
APC APS
1,000
4,000
7,000
10,000
1500 -500
3500 500
6300 700
8500 1500
Mr.
Weiss
Macro Unit 3 Math Work
9. Using the data in this table, what is the APC
and APS at $ 7,000?
DI
C
S
APC APS
APC = 6300/7000 = .90
APS = 700/7000 = .10
1,000
4,000
7,000
10,000
1500 -500
3500 500
6300 700 .90
8500 1500
.10