What is the APC and APS for this chart? .APC .50, APS .50

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Presentation transcript:

Multipliers Quiz Review APS, APC MPS, MPC Government/Investment Spending Taxes GDPr Calculations

What is the APC and APS for this chart? .APC .50, APS .50 DI Consumption Savings APC APS 2000 1500 500 What is the APC and APS for this chart? .APC .50, APS .50 APC .75, APS .75 APC .80, APS .20 APC .75, APS .25 NA

What is the APC and APS for this chart? .APC .50, APS .50 DI Consumption Savings APC APS 2000 1500 500 What is the APC and APS for this chart? .APC .50, APS .50 APC .75, APS .75 APC .80, APS .20 APC .75, APS .25 NA

-------------------- DI Consumption Savings MPC MPS 2000 1500 500 -------------------- 3000 1000 What is the MPC and MPS rate? MPC .50, MPS .50 MPC .75, MPS .75 MPC . 80, MPS . 20 MPC .75, MPS .25 NA

-------------------- DI Consumption Savings MPC MPS 2000 1500 500 -------------------- 3000 1000 What is the MPC and MPS rate? MPC .50, MPS .50 MPC .75, MPS .75 MPC . 80, MPS . 20 MPC .75, MPS .25 NA Why are there dashed lines in row 1?

What is the Government Spending/Investment Multiplier if the MPC = .85 4 5.5 -5.5 6.6 3.4

What is the Government Spending/Investment Multiplier if the MPC = .85 4 5.5 -5.5 6.6 3.4

What is the Tax Multiplier (for a tax increase), if MPC = .85? 4.6 5.6 -5.6 6.6 3.4

What is the Tax Multiplier (for a tax increase), if MPC = .85? 4.6 5.6 -5.6 6.6 3.4 What if it was a tax decrease?

What is the value of the Balance Budget? WHY?????? 1 -1 2 -2 3.14

What is the value of the Balance Budget? WHY?????? 1 -1 2 -2 3.14

If Toyota builds another plant in San Antonio at $100M, and the MPC is If Toyota builds another plant in San Antonio at $100M, and the MPC is .80, how much will GDP be affected by? $200M $350M $500M -$200M $80M

If Toyota builds another plant in San Antonio at $100M, and the MPC is If Toyota builds another plant in San Antonio at $100M, and the MPC is .80, how much will GDP be affected by? $200M $350M $500M -$200M $80M

If there is a Tax Increase of $50M and MPC is If there is a Tax Increase of $50M and MPC is .75, how much will GDP be affected by? -$150M $350M $500M -$200M -$80M

If there is a Tax Increase of $50M and MPC is If there is a Tax Increase of $50M and MPC is .75, how much will GDP be affected by? -$150M $350M $500M -$200M -$80M

If there is a Recessionary Gap of $200 Billion and MPC is If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government spend to close this gap? $20B $35B $40B -$20B $80B

If there is a Recessionary Gap of $200 Billion and MPC is If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government spend to close this gap? $20B $35B $40B -$20B $80B

If there is a Recessionary Gap of $200 Billion and MPC is If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government lower taxes by to close this gap? $30B $35B $40B $45B $50B

If there is a Recessionary Gap of $200 Billion and MPC is If there is a Recessionary Gap of $200 Billion and MPC is .80, how much money should the government lower taxes by to close this gap? $30B $35B $40B $45B $50B