Assume that four-sector model is at play. C+l+G. All expenditures are autonomous. Given: = 700 + .80 (1-t)Y TR = 100 = 0.25 L = 0.20Y – 40i = 210 – 75i M/P = 800 = 1000 Required: 1. Suppose government expenditures decreases to 880, what happens to equilibrium inco interest rates? Show your proof: computation and graph presentation. 2. Assuming that the fourth sector is included with an autonomous net exports of 250, wh happens to equilibrium income and interest rate? 3. Given your simulations above, what realizations do you have with respect to the

Assume that four-sector model is at play. C+l+G. All expenditures are autonomous. Given: = 700 + .80 (1-t)Y TR = 100 = 0.25 L = 0.20Y – 40i = 210 – 75i M/P = 800 = 1000 Required: 1. Suppose government expenditures decreases to 880, what happens to equilibrium inco interest rates? Show your proof: computation and graph presentation. 2. Assuming that the fourth sector is included with an autonomous net exports of 250, wh happens to equilibrium income and interest rate? 3. Given your simulations above, what realizations do you have with respect to the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that in 2016, the followng prevals n the Republic of Nurd Goverment spending (0) 50 Not taxos (T)- 50 Planned investment - S30 Assume that househoids in Nurd censume 75 percent of heir income, they save 25 percent of their income. Thun, the consumption function and saving function of Nurd re C-075Y, and S=025Y. where disposabile income YY-T Determine the equilitrium level of income Equilibrium income =$(Enter your reaponse as an integer.)
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Assume a model with no government and no foregin sector If we gave a savings funcyion thatvis defined as s 200+ (0.1)Y and autonomous investment decreases by 50, by how much wikk consumption change?
Consumption expenditure: Investment expenditure: Government budget balance Money demand C = 100 +0.8 Ya I= 120 – 500i Deficit of 50 200 2000 i + 0.1Y Money supply: Lump-sum taxes: Current account T=150 = 0 MD M= 100 %3D Where i is the interest rate, Y is the real GDP; Ya is the disposable income What is the equilibrium Y? Select one: O a. 1285 cross c O b. 675 cross O c. 700 cross O d. 1000 cros cros O e. None of the above
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I need help on this using 1. Keynesian cross and IS-Lm model
QUESTION 14 Expenditures, Income Price level 60 50 40 30 20 10 80 70 60 50 40 30 20 10 0 0 0 10 Qe Qf0 40 50 LRAS 10 Qe20 Qf 30 O (d) All the above. O (e) Only (a) and (b) are true O (f) None of the above. AE1 AE* ΑΕo real GDP = Q ADO AS AD1 40 50 real GDP = Q 14. Which of he following statements accurately explain the scenario illustrated by these diagrams? O (a) Assuming ADo and AEo are the original positions of the AD and AE curves respectively, the original situation illustrated is a recessionary gap of 10. O (b) To restore full-employment equilibrium Aggregate Expenditures must be increased to AE1 which is equivalent to shifting the AD curve to AD1 O (c) Because the short-run Aggregate Supply (AS) curve is upward sloping, the shift in AD will be associated with some products price inflation. This will cause the AE curve to decline from AE1 to AE* because of the wealth, interest rate, and trade effects of inflation.
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Which group is most likely to demand funds from the financial (loanable funds) market? O financial institutions who lend funds to people. O the government when they run a budget surplus. O firms who want to borrow to pay for new capital. O people who have extra income they want to save. « Previous Next ASUS 16 5 6 7 R
Refer to the following equations which describe a hypothetical economy. C 150 + 0.6Y %3D 1. 100 %3D 50 Under what level of output would there be an unplanned increase in inventory? Select one: a. 800 b. 600 c. 500 O d. 400
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