问题


There is a single choice question about high school macroeconomics. Answer the question by replying A, B, C or D.
Question: If the marginal propensity to consume is 0.8 what is the largest total increase in GDP that can result from $500 of new spending?
A. $400
B. $500
C. $625
D. $2,500
Answer:

答案

模型 模型答案 正确答案
金声玉亮2.0

D. $2,500

Explanation: The marginal propensity to consume (MPC) is the fraction of a change in income that is spent on consumption. If the MPC is 0.8, then 80% of any increase in income will be spent on consumption.

To find the largest total increase in GDP that can result from $500 of new spending, we need to calculate the multiplier effect. The multiplier effect is the ratio of the change in GDP to the initial change in spending.

The formula for the multiplier effect is:

Multiplier = 1 / (1 - MPC)

In this case, the MPC is 0.8, so the multiplier is:

Multiplier = 1 / (1 - 0.8)
= 1 / 0.2
= 5

This means that for every dollar of new spending, GDP will increase by $5.

Therefore, if there is $500 of new spending, the largest total increase in GDP that can result is:

$500 x 5 = $2,500

So, the correct answer is D. $2,500.
D
deepseekr1

The question asks for the largest total increase in GDP resulting from $500 of new spending with an MPC of 0.8. The multiplier formula is \( \frac{1}{1 - MPC} \). Substituting MPC = 0.8, the multiplier is \( \frac{1}{1 - 0.8} = 5 \). Multiplying the initial spending by the multiplier gives \( 500 \times 5 = 2,500 \). This calculation assumes no leakage (e.g., taxes or imports), which aligns with the question's simplicity.

**Answer: D**
D
gpto1 D D
GPT-4o D. $2,500 D
llama3.1-70B-Instruct

D
D
llama3.1-405B-Instruct

D. $2,500

Explanation: The marginal propensity to consume (MPC) is the fraction of a change in income that is spent on consumption. If the MPC is 0.8, then 80% of any increase in income will be spent on consumption.

To find the largest total increase in GDP that can result from $500 of new spending, we need to calculate the multiplier effect. The multiplier effect is the ratio of the change in GDP to the initial change in spending.

The formula for the multiplier effect is:

Multiplier = 1 / (1 - MPC)

In this case, the MPC is 0.8, so the multiplier is:

Multiplier = 1 / (1 - 0.8)
Multiplier = 1 / 0.2
Multiplier = 5

This means that for every dollar of new spending, GDP will increase by $5.

Since the initial increase in spending is $500, the largest total increase in GDP that can result is:

$500 x 5 = $2,500

Therefore, the correct answer is D. $2,500.
D
DeepSeek-Coder-V2 C D
Qwen2-72B-Instruct D. $2,500 D
baichuan4 C. $625 D
doubao D. The multiplier is 1 / (1 - marginal propensity to consume) = 1 / (1 - 0.8) = 5. The total increase in GDP = multiplier * new spending = 5 * 500 = 2500. D
minimax The largest total increase in GDP that can result from new spending is calculated using the formula for the multiplier effect, which is:

Multiplier = 1 / (1 - MPC)

Where MPC is the marginal propensity to consume. In this case, MPC = 0.8.

Multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5

This means that for every dollar spent, there will be a total increase in GDP of $5. Therefore, if there is $500 of new spending, the total increase in GDP would be:

$500 * 5 = $2,500

So the answer is:

D. $2,500
D
kimi To calculate the largest total increase in GDP from new spending, we use the multiplier effect, which is based on the marginal propensity to consume (MPC). The formula for the multiplier is:

\[ \text{Multiplier} = \frac{1}{1 - MPC} \]

Given that the MPC is 0.8, the multiplier would be:

\[ \text{Multiplier} = \frac{1}{1 - 0.8} = \frac{1}{0.2} = 5 \]

Now, to find the total increase in GDP from $500 of new spending, we multiply the new spending by the multiplier:

\[ \text{Increase in GDP} = \text{Multiplier} \times \text{New Spending} \]
\[ \text{Increase in GDP} = 5 \times 500 = 2500 \]

So the largest total increase in GDP that can result from $500 of new spending is:

Answer: D. $2,500
D
wenxinyiyan D. $2,500

Explanation:

The marginal propensity to consume (MPC) is the proportion of an increase in income that is consumed, rather than saved. The question asks about the largest total increase in GDP that can result from $500 of new spending, given an MPC of 0.8.

To calculate this, we use the multiplier effect formula, which is:

Multiplier = 1 / (1 - MPC)

Inserting the MPC of 0.8 into the formula, we get:

Multiplier = 1 / (1 - 0.8) = 1 / 0.2 = 5

This multiplier tells us that for every dollar of new spending, GDP could increase by up to 5 dollars, assuming all other factors remain constant.

Therefore, the largest total increase in GDP that can result from $500 of new spending is:

$500 * 5 = $2,500

So the correct answer is D. $2,500.
D
zhipu To determine the largest total increase in GDP that can result from $500 of new spending, we need to use the concept of the spending multiplier. The spending multiplier (k) is calculated using the marginal propensity to consume (MPC) as follows:

\[ k = \frac{1}{1 - MPC} \]

Given that the MPC is 0.8:

\[ k = \frac{1}{1 - 0.8} = \frac{1}{0.2} = 5 \]

The total increase in GDP is then the initial spending multiplied by the spending multiplier:

\[ \text{Total increase in GDP} = \text{Initial spending} \times k \]
\[ \text{Total increase in GDP} = $500 \times 5 = $2,500 \]

So, the correct answer is:

D. $2,500
D
gpto1 D D