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Ap Macroeconomics Help

parikhsparikhs Posts: 1,607Registered User Senior Member
edited December 2005 in High School Life
Okay, I have a test tomorrow and need someone really good at it to help me out. I'm having trouble with a bunch of questions and need someone to explain them to me. Plz...!!!!!! pm me
Post edited by parikhs on
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Replies to: Ap Macroeconomics Help

  • parikhsparikhs Posts: 1,607Registered User Senior Member
    Bump!!!!!!!!!!!!!
  • dxu33dxu33 Posts: 626Registered User Member
    what is your pm??
  • dxu33dxu33 Posts: 626Registered User Member
    ok, I'm not an EXPERT on macro, but took a course on it in the summer so i may be able to help, maybe not...
  • parikhsparikhs Posts: 1,607Registered User Senior Member
    http://www.mhhe.com/economics/mcconnell/student/stq/chap10.htm

    I don't get how to get #2, 4, 5...and no1 that I know can explain it to me either. Please try!
  • dxu33dxu33 Posts: 626Registered User Member
    can't you guess, or is this for a grade?? (you can just guess a random answer, and click submit, and the answer will pop up, but you may be just as a graded online one???)
  • enysome1344enysome1344 Posts: 100Registered User Junior Member
    2. is D (16.67) because based on the chart the MPC (marginal propensity to consume) is .7 (MPC = change C/change output = 228-200/240-200). The multiplier is 1/MPS (marginal propensity to save) and because MPC + MPS = 1, MPS = .3 so the multiplier is 1/.3 = 3.33. So, 5 * 3.33 = 16.67

    4. is A (increase by $75) based on the same explanation as above

    5. is C (3.33 and 0.7) because each round of income increases is based on MPC. Of the initial 150 bil, the amount that is consumed is 105, and the rest is saved. Thus MPC is equal to 105/150 = .7. Then MPS = .3 and the multiplier, 1/MPS, is 3.33
  • dxu33dxu33 Posts: 626Registered User Member
    btw, 2 is d, 4 is b, and 5 is c... hope this helps
  • dxu33dxu33 Posts: 626Registered User Member
    i thought 4 was b??
  • dxu33dxu33 Posts: 626Registered User Member
    do you need an explanation??
  • cosine45cosine45 Posts: 866Registered User Member
    ^^^^^^^^^^^
    yeah #4 is b.
  • dxu33dxu33 Posts: 626Registered User Member
    hello, parikhs, are you there??
  • parikhsparikhs Posts: 1,607Registered User Senior Member
    Nevermind...I got them..4 is b because lets say GDP = 10 and 20 and Consumption = 5 and 10...MPC = 5/10 or .5

    if all increase by 25 you get:

    GDP = 35 and 45
    Consumption = 30 and 40

    It still is 5/10 for MPC

    ...

    I totally forgot about MPC / Multiplier when doing these problems...silly me
  • dxu33dxu33 Posts: 626Registered User Member
    ok then, i guess that's settled.
  • parikhsparikhs Posts: 1,607Registered User Senior Member
    wait..I don't get #5...why do you do 105/150? I'm confused
  • parikhsparikhs Posts: 1,607Registered User Senior Member
    nvm got it...IDK how i'm going to get this on the test :(..any advice?
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