Macroeconomics - Exam 3(Complete solutions) aggregate expenditures correct answers Consist of GDP equation: C + I + G + (X - M) MPC correct answers Marginal Propensity to Consume MPS correct answers Marginal Propensity to Save consumption correct answers (economics) the utilization of economic goods to satisfy needs or in manufacturing Saving correct answers income not used for consumption Investment correct answers spending on capital equipment, inventories, and structures, including household purchases of new housing Government spending correct answers spending on goods and services like schools and teachers/hospitals and nurses APC correct answers Average Propensity to Consume Average Propensity to Consume correct answers desired consumption/level of disposable income APS correct answers Average Propensity to Save Average Propensity to Save correct answers desired saving/disposable income 0.25 (1-0.75 = 0.25) correct answers If the MPC = 0.75, the MPS = ?250 (0.25*1000 = 250) correct answers If the MPC = 0.75 & the MPS = 0.25, how much will saving change if income changes by $1000 750 (0.75*1000 = 750) correct answers If the MPC = 0.75 & the MPS = 0.25, how much will consumption change if income changes by $1000 .05 (250/5000 = .05) correct answers If your income is $5000 and you save $250 of that, what is your APS?.95 (4750/5000 = .95) correct answers If your income is $5000 and you spend $4,750, what is you APC?.075 (4900-4750 / 5200-5000) correct answers If your income grows from $5000 to $5200, and your consumption rises from $4750 to $4900, what is your MPC?
0.25 (250-300 / 5200-5000) correct answers If your income grows from $5000 to $5200, and your saving rises from $250 to $300, what is your MPS?
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