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Consumption is the largest part of GDP.

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15y ago

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What is writing a fraction as an equivalent fraction with a larger denominator called?

It is called "writing a fraction as an equivalent fraction with a larger denominator"!


Explain why an upward shift of the consumption schedule typically involves an equal downshift of the saving schedule What is the exception to this relationship?

An upward shift of the consumption schedule indicates that consumers are spending more at every income level, which typically leads to a corresponding downshift in the saving schedule since savings are derived from disposable income after consumption. When consumers increase their consumption, they reduce the portion of their income allocated to savings. The exception to this relationship occurs when there is an increase in income that is not fully spent, such as during a period of economic growth where consumers may choose to save a larger fraction of their increased income.


What is the name of a fraction with a larger number on top?

The name of a fraction with a larger number on top is called an improper fraction.


What fraction is larger?

When the fractions are converted to equivalent fractions with the same denominator the one with the larger numerator is the larger fraction.


When does multiplying by a fraction give an answer that is larger than that original answer?

A fraction can be larger than 1, for example, 4/2 is a fraction (which can be simplified to 2). Only a fraction that is larger than 1, multiplied by another number gives you a larger number.


What is themultiplier effect?

The multiplier effect refers to the phenomenon where an initial injection of spending into the economy leads to a larger increase in overall economic activity. This occurs as the initial spending stimulates additional rounds of spending as income generated from the initial spending is re-spent by others. The multiplier effect helps magnify the impact of government spending or investment on the economy.


Why a cut in government spending has a larger effect under a fixed exchange rate system and perfect capital mobility than in a closed economy?

fixed and floating exchange rates


What type of fraction is larger than 1?

an improper fraction


What happens to the quotient when you divide a fraction by a fraction?

The quotient is larger than the original fraction.


What is the multiplier and how is it calculated?

The multiplier is an economic concept that measures the effect of an initial change in spending on the overall economy. It is calculated by dividing the change in total output (GDP) by the initial change in spending. The formula can be expressed as: Multiplier = Change in GDP / Change in Spending. Factors such as the marginal propensity to consume and save influence the size of the multiplier, with higher consumption rates leading to a larger multiplier effect.


When fractions have like denominatorsthe larger the what the larger the fraction?

the numerator


What is a fraction called when the numerator is larger than the denominatior?

An improper fraction.