Consider an economy described by the followng: -$4 trillion -$1.5 trillion - $3.0 trillion - $3.0 trillion - $1.0 trillion NX -0.8 -0.35 - 0.15 - 0.5 - 2 a. Derive expressions/equations for the MP curve and the AD curve. b. Calculate the real interest rate and aggregate output whenR=2 and =4. c. Based on the answer of Question B. Explain the graphs of the MP curve and the AD curve in terms of upward or downward sloping

Consider an economy described by the followng: -$4 trillion -$1.5 trillion - $3.0 trillion - $3.0 trillion - $1.0 trillion NX -0.8 -0.35 - 0.15 - 0.5 - 2 a. Derive expressions/equations for the MP curve and the AD curve. b. Calculate the real interest rate and aggregate output whenR=2 and =4. c. Based on the answer of Question B. Explain the graphs of the MP curve and the AD curve in terms of upward or downward sloping

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the year of 2019, the U.S. economy produced a total output of $20.75 trillion. During the same year, the U.S. federal government spent $7.88 trillion. The desired consumption and desired investment in the U.S. for the year is described by: Cd=15-150r, Id=10-200r Where Cd is the desired consumption in trillions of $, Id is the desired investment in trillions of $, and r is the real interest rate in decimal form. if the average real interest rate during the year 2019, is 4.1%, how much is the desired national saving, Sd, in trillions of $? round answer to at least 2 decimal places.
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8d
State whether True/false.
Hh.87.
Consider an economy described by the following: C = $4 trillion Ī G = $1.5 trillion = = $3.0 trillion T NX = $3.0 trillion = $1.0 trillion F = 0 mpc = 0.8 d = 0.35 x = 0.15 λ = 0.5 г = 2 a. Derive expressions for the MP curve and the AD curve. b. Calculate the real interest rate and aggregate output when л= 2 and π= 4. c. Draw a graph of the MP curve and the AD curve, labelling the points given in part (b).