What is CGPA (scale of 10) means?
I remember when my 10th result came out it was 8.6 cgpa. This was my first time i saw result in cgpa in place of percentage like before. So i thought it means I've got 86%. But later i found out a lot of my friends getting 10 cgpa, so my perception was wrong.In 11th, about 18 students was 10 cgpa holder in my class, damn that was too much.CGPA stands for Cumulative Grade Point Average, it traces your progress in CBSE system & other systems of edu. which follows grade wise assessment.1 CGPA is equal to 9.5 percentile (remember not percentage) so 10 CGPA implies 95 percentile which can be anywhere between 95%–100%but since the lowest is always taken as the standard, 10 CGPA always implies 95% (add or subtract 5% from 100%)Actually in CBSE result us provided in based of scores in points. For every 10 marks, you get a point, starting from 0 to 10.0-9 : 1 points9-19 : 2 points19-29 : 3 points29-39 : 4 points39-49 : 5 points49-59 : 6 points59-69 : 7 points69-79 : 8 points79-89 : 9 points90-100 : 10 pointsActually scoring 10 cgpa does not means you have scored 100% or something like that.For example, if a person scores 90 marks in each subject, will actually score 90% but his cgpa will be 10 because he's a 10 pointer (10+10+10+10+10)/5= 10.But if a person scoring 89 in one subject and perfect 100 in 4 subjects will have (10+10+10+10+9)/5= 9.8 cgpa but his percentage will be (100+100+100+100+89)/5= 97.8% which is way more than his 10cgpa rival.10 cgpa has nothing to do with your performance, and i don't know why this rule is being used in CBSE.10cgpa just means that you scored above 90 in all subjects. For knowing percentile you can multiply your cgpa with 9.5. For example 10x9.5= 95%.Hope this will help :)
If the MPC is 0.8 and you reduce taxes by $100 billion, what will be the effect on GDP?
The tax multiplier represents the multiple by which GDP increases in response to a decrease in taxes. Assume the government decreases tax rates in such a way as to reduce total taxes by $100 billion.This increases disposable income by $100 billion.If the MPC is 0.8. Households will spend $80 billion (0.8 × $100 billion).The first-round of increase in consumption of $80 billion will trigger second round of increase in disposable income of the same amount, which in turn will trigger second-round of consumption increase of $64 billion (= 0.8 × 0.8 × $100 billion), and so on.The final outcome is that the GDP increases by a multiple of initial decrease in taxes. This multiple is the tax multiplier.FormulaAssuming any decrease in tax affects consumption only (not investment or government spending)Tax Multiplier = MPC/MPS = MPC/(1 - MPC)Where:MPC is marginal propensity to consumeMPS is marginal propensity to save (MPS equals 1 − MPC)So if MPC = 0.8 then MPS must = 0.2then.8/.2 = 4This means 4 is the tax multiplier, so multiply it by the tax reduction of 100 billion4 x 100 bn = 400 billionThe tax multiplier will be lower than the spending multiplier because in the first round of increase in government expenditures, consumption increases by 100%, while in case of a decrease in taxes of the same amount, consumption increase by a factor of MPC.
Classical model economics?
My professor went through this entire area the last two weeks in Keynesian theory and then gives us review questions for the final based off classical theory. His tests are usually very similar to his review but he never reviews the answers. 1) In the classical model, what effect does a fall in the money supply have on real gdp? answers: decrease, increase, no change, unable to tell? My solution is no change According to my book, the classical model, money supply does not effect real variables such as real gdp but does affect nominal. Best answer no change? 2) In the classical model, if the MPC is 0.9, a $100 increase in govt. spending a - raises real gdp by 1000 b - lowers real gdp by 200 c - no effect on real gdp d - unable to tell I have best answer: unable to tell. Based upon: If govt. spending is upon proper purchases it would be included, if was in transfer payments it would not? 3) This makes no sense to me unless their is a "original classical model" basis of short and long run. Consider a graph with the PRICE level on the vertical axis and REAL GDP on horizontal axis. The aggregate SUPPLY CURVE of the original classical model is: Upwards sloping, downward sloping, vertical, horizontal or unable to tell. Am I correct in thinking downward sloping - agg demand curve vertical = Long run Agg. Supply horizontal = Short run Agg. Supply This is all he gave, thus my best answer would be = unable to tell? 4) In the "original classical model" where velocity and real gdp is fixed, a tripling in the money supply has the effect on the price level? the price level= triples, doubles, unchanged, unable to tell ? and and which effect is referred to: qty theory of money, keynesian multiplier, say's law, or the phillips curve? I have the price level will triple due to qty theory of money (according to qty theory equation => 3x change + 0 = P +0 => p = 3x
What is the value of the multiplier when the MPC is 0.10 or .025?
MPC = marginal propensity to consume MPS = marginal propensity to save Both MPC and MPC are percentages of disposable income. Therefore total income is 1. Assumption for this model: Income that is not consumed will be saved. Thus, MPC + MPS = 1 Given MPC 0.1, then MPS will have to be 0.9 Mutiplier 1 / 0.9 = 1.11 What is the mutiplier? The mutiplier tells us that for a $1 increase in either consumption government spending or investments, there will be a total increase of $1*mutiplier increase in the economy. How is the mutiplier derived? AD: aggregate demand AS: aggregate supply Y: income in equilibrium we know that AD = AS and AD = Y (we use what we earned, thus we demand what we can command, which is our income) AS = C + I + G C: consumption I: investments G: government spending therefore Y = C + I + G let's look at consumption function: C(Y) = c0 + c1(Y) c0: the amount that we consume even when there is no income. (we will still have to eat even if we unemployed) c1: MPC that's why we mutiply c1 by Y to get the amount of income that we spend on consumption, and sum it with c0 to get total consumption. thus the equilibrium equation becomes Y = C + I + G (substitute C(Y)) Y = c0 + c1Y + I + G Y - c1Y = c0 + I + G Y(1-c1) = c0 + I + G Y = [ 1 / (1-c1) ] * [c0 + I + G] therefore [ 1 / (1-c1) ] is the mutiplier. An increase of $1 in c0, I or G will mutiply by the mutiplier to cause an effect on Y. [ 1 / ( 1 - c1) ] = [ 1 / (1 - MPC) ] = [ 1 / MPS ] (note: as explained at the beginning, MPC + MPS = 1 MPC = 1 - MPS MPS = 1 - MPC are different forms of the same equation)