Economics Calculations Help Needed

T

TahoE

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If the MPC is .8 and GDP = 8,000 B, a $200 Billion drop in the value of stocks will shift AD left by _________ (assuming no change in the Price Level)

A. $200B
B. $1T ($1000B)
C. $100B
D. $5B


Thank you in advance!!

Please don't just guess... I really need this to be right (will get me a 100 on my online test)
 
shoot, tahoe, I would need to dig up my text books for macro to remember the formula, and unfortunately they are packed away... sorry...
 
haha its ok, OH and ChaCha's response was "Sorry we dont know what you are talking about" and i usually LOVE chacha, lol. Its ok tho, i found out the answer.

thanks guys
 
TahoE said:
haha its ok, OH and ChaCha's response was "Sorry we dont know what you are talking about" and i usually LOVE chacha, lol. Its ok tho, i found out the answer.

thanks guys
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Ahahahahaha are you serious?!?? Oh man that guide is going to get a pretty bad QC on that one.
 
Do it yourself :P seriously, dont let Garden see this thread :)
 
Lol the answer was B. Darth: I did it myself too, but why would Garden get mad? Im just trying to get some help to further my higher education. :)
 
Good Luck Tahoe!

- I just got an A in my Macro Economics class :)

Classic Keynesian Macro analysis...how ever did I get through life before I understood you :confused1:
 
PureBlood said:
ugh im gonna have to take economics next year :/

not looking forward to it
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If you mean high school economics, then don't worry. If you mean college, I'm not sure :). But high school econ is super easy and I actually enjoyed it a bit.
 
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