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# Ap Macroeconomics Help

Registered User Posts: 1,607 Senior Member
edited December 2005
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

## Replies to: Ap Macroeconomics Help

• Registered User Posts: 1,607 Senior Member
Bump!!!!!!!!!!!!!
• Registered User Posts: 626 Member
• Registered User Posts: 626 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...
• Registered User Posts: 1,607 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!
• Registered User Posts: 626 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???)
• Registered User Posts: 100 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
• Registered User Posts: 626 Member
btw, 2 is d, 4 is b, and 5 is c... hope this helps
• Registered User Posts: 626 Member
i thought 4 was b??
• Registered User Posts: 626 Member
do you need an explanation??
• Registered User Posts: 866 Member
^^^^^^^^^^^
yeah #4 is b.
• Registered User Posts: 626 Member
hello, parikhs, are you there??
• Registered User Posts: 1,607 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
• Registered User Posts: 626 Member
ok then, i guess that's settled.
• Registered User Posts: 1,607 Senior Member
wait..I don't get #5...why do you do 105/150? I'm confused
• Registered User Posts: 1,607 Senior Member
nvm got it...IDK how i'm going to get this on the test :(..any advice?
This discussion has been closed.