Rearrange the equation Y = a + MPC * Y + I to solve for Y.

In an open economy with government spending, if the MPC is 0.7 and government spending increases by \$100, what is the expected change in GDP?

If consumption increases by \$30 in an economy with an MPC of 0.5, what is the expected change in GDP?

Simplify the equation Y - MPC * Y = a + I by factoring out the common term.

In an open economy with government spending and net exports, if the MPC is 0.75 and net exports increase by \$200, what is the expected change in GDP?

What does the multiplier effect signify in macroeconomics?

In a private closed economy, which of the following is NOT a component of aggregate expenditures?

In a private closed economy, if autonomous consumption is \$200, MPC is 0.75, and investment is \$100, what is the equilibrium GDP?

If the marginal propensity to consume (MPC) is 0.8, what is the value of the multiplier?

Which of the following best describes the multiplier effect?