Suppose that in the following figure, investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP? a. $10 million b. $100 million c. $90 million d. $9 million

in an economy an increase in investment leads to an increase in national income 3 times more than increase in investment. calculate mpc

If the government wishes to increase GDP by $1200b and the MPC is 0.75, it should:Question 2Select one:A.Increase taxes by $300b.B.Decrease taxes by $300b.C.Decrease taxes by $400b.D.Increase taxes by $400b.

If mpc = 0.75, a decrease from 700 to 660 billion n government spending, will decrease GDP byGroup of answer choices40 billion10 billion160 billion20 billion

Suppose that business executives are very optimistic, and they raise their investment spending. What happens to the expenditure line? How will this affect real GDP?ResponsesThe expenditure line shifts up, and real GDP increases by more than the amount of the shift.The expenditure line shifts up, and real GDP increases by more than the amount of the shift.The expenditure line shifts up, and real GDP decreases. The expenditure line shifts up, and real GDP decreases. The expenditure line shifts down, and real GDP decreases by more than the amount of the shift. The expenditure line shifts down, and real GDP decreases by more than the amount of the shift. The expenditure line shifts down, and real GDP increases.The expenditure line shifts down, and real GDP increases.

Suppose the nation's Expenditure on Consumption (C) amounts to $35000, Expenditure on Investment (I) stands at $15000, Government Expenditure (G) equals $2800, Export Revenues (X) total $3000, and Import Costs (M) tally to $2500. Calculate the nation's GDP.A.$52000B.$52300C.$53300D.$52800