The explanations in the book don't seem to match how these problems are set up, and I am stumped! I need formulas written in numbers, not lengthy wording. Please help!

1) If the GDP in 1999 were $800 and the GDP deflator was 125%, 1987=100%, what is the real GDP and base year?

2) Assume the MPC is 2/3. If gross investment spending increases by $2 million, the level of the GDP will change by how much?

3) What effect will a tax cut of $20 billion have on the GDP if the MPC is 0.9?

4) If government spending and taxation both increase by $5 billion, what will be the effect on the GDP?

Thanks for your help.

Solution Preview

1) If the GDP in 1999 were $800 and the GDP deflator was 125%, 1987=100%, what is the real GDP and base year?

since the GDP deflator of 1987=100%, then year 1987 is the base year
Then 1999 real GDP = GDP / deflator = 800 / 125% = $640

2) Assume the MPC is 2/3. If gross investment spending increases ...

Solution Summary

The OTA provides formulas written in numbers for the embedded problems.

... algebra questions, each of which is written in details. ... of one equation is also the solution of another equation. ...Write and solve a system of equations to find ...

... a. Write an equation using only one variable that could be used to solve for the constant of variation k. b. A biologist counted the number of white tail deer ...

... a system of inequalities representing this situation, where x is the number of standard playhouses and y is the number of deluxe ...Write the equation of the ...

... Example Graph the equation y = x + 1 using the third method. ... For example, 1,000,000 is written as 1.0 × 10 6 . ...Write 1 billion using scientific notation. ...

... excluding the hydrogen atoms V = Total number of valence ... If there is a better Lewis formula, write it down ... c. The same student writes the following resonance ...

... 3: write the given function entirely in terms of the second function ... 4: Is this equation an identity ... 5: writing a given expression in an alternative form is an ...

... i) What are the x-intercept and y-intercept of a linear equation? ... 4. Write a system of equations having a. A unique solution. b. An infinite number of solutions ...

... A. Determine the linear equation that will represent the number of children who will enroll at a given fee. Hint: To write the slope, you need two points on ...

... This is the equation of a hyperbola and not a ...Write quadratic equations for which the following are solutions for x: a ... solutions) x0 and x1 can be written as: y ...

... x is the number of pencils purchased. y is the number of pens purchased. b. Graph the equation. ... x 0 600. c. Write the equation in slope-intercept form. ...