Explaining relationships between multiplier and mps and mpc

Question

Question 1) Explain and state the multiplier effect.

Question 2) Explain the relationships between multiplier and the MPS and the MPC.

Question 3) Explain the net export schedule.

Question 4) Describe the impact of positive (or negative) net exports on aggregate expenditures and the equilibrium level of real GDP.

Question 5) Describe the effect of increases (or decreases) in exports on real GDP.

Question 6) Describe the effect of increases (or decreases) in imports on real GDP.

Question 7) Explain how government purchases affect equilibrium GDP.

Question 8) Explain how personal taxes affect equilibrium GDP.

Question 9) Describe what you mean by balanced-budget multiplier and why it equals 1.

Question 10) Identify a recessionary gap and describe its effect on real GDP.

Question 11) Identify the inflationary gap and describe its effect.

Question 12) Describe the relationship between concept of recessionary gap and the Great Depression or Japan’s recession.

Question 13) Describe the relationship between the Vietnam era inflation and inflationary gap concept.

Question 14) Write down four limitations of the aggregate expenditures model.