Hard to tell if it is going in or coming out! 1.Draw a graph, labeling Qe, Qf, AS, AD and Pe, that shows an inflationary GDP gap (2 pts) (label the gap,

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Hard to tell if it is going in or coming out!

1.Draw a graph, labeling Qe, Qf, AS, AD and Pe, that shows an inflationary GDP gap (2 pts) (label the gap, too) 3.Define crowding out 4.Given MPS show the formula(s) for the multiplier M = This sure looks familair!

With an income tax rate of 20%, an MPC of.75 and autonomous consumption of $200 per month 5. At $1000 of monthly pre tax income, how much does this person save each month? 6. At what level of disposable income does this person save $250? The hurricane was more fun than this.

7.At an MPC of.66667, what is the multiplier? Use rounding! 8.A sudden change in investment demand caused an overall $600B shift in Aggregate Demand. If MPC were.8 what was the size of the initial shift in investment? Hey, one less MPC question!

Group, pick two of these concepts. Disposable income Marginal propensity to consume Aggregate supply 9, 10. Define or give examples of Group’s picks Seems like a reasonable request.