Answer to Question #260369 in Biology for Paul Hackman

Question

1. Let the aggregate demand schedule be given by AD = 400 + 200/P and potential GDP be equal to 5500.The price level required to sustain equilibrium at potential GDP is then?

2.Let CPI increase from 110 to 116.5 to 133.1 over the course of two successive years.Average annual inflation over the period would then be ?

3. If the marginal propensity to consume (mpc) is 0.5, then , in the presence of an income tax of 30 % ,the multiplier is about?

4.Let nominal GDP change from GHS 1500 to GHS 1650 over the course of one year. If prices have increase uniformly by 5% over the same year, real GDP?

5. A shift of one million dollars from a checking account to a savings account means