The marginal propensity to save is equal to 0.4 and there are no exports or imports. (a) Calculate the real GDP in this country. Show your work. (b) Calculate the marginal propensity to consume. Show your work. (c) Suppose that the government increases spending from $200 billion to $300 billion. (i) Calculate the maximum change in real GDP . Show your work. (ii) Given the change in real GDP in part (c)(i), calculate the maximum level of the new equilibrium real GDP . Show your work. (d) Suppose that taxes decrease by $100 billion. Will the maximum change in real GDP be larger than, smaller than, or equal to the change in real GDP identified in part (c)(i) ? Explain.

light-year  

the distance that light travels in a vacuum in one year, equal to about 9.46 trillion km (5.88 trillion mi). light-years are used in measuring interstellar and intergalactic distances.  

parsec  

a unit of distance used in astronomy, equal to about 3.25 light years (3.08 × 1016 meters).  

parallax  

the apparent angular displacement of a celestial body due to its being observed from the surface instead of from the center of the earth (diurnal parallax or geocentric parallax) or due to its being observed from the earth instead of from the sun (annual parallax or heliocentric parallax)  

absolute magnitude  

the magnitude (brightness) of a celestial object as it would be seen at a standard distance of 10 parsecs.  

apparent magnitude  

the magnitude of a celestial object as it is actually measured from the earth.  

redshift  

an increase in the wavelength of radiation emitted by a celestial body as a consequence of the doppler effect.  

the great thing about your imagination is that it doesn't have to make sense! if i were you i would be stuck in space, no communication with earth travelling around and around, you can only guess how long its been since your communication broke down. you land on an undiscovered planet, you do a scientific investigation examining the elements and conditions. you come across alien lifeforms.  

best of luck!