Goods Market Money market C = 200 + (4/5)YD TA = (1/8)Y - 40 Money Supply => ms = 400 Money Demand => md = (1/4)Y + 100 - 5Si Consumption => Таx => Transfer Payment => TR = 60 Investment I = 300 – 10i => Government Spending G = 70 Net Exports => NX = 150 - (1/5)Y

Goods Market Money market C = 200 + (4/5)YD TA = (1/8)Y - 40 Money Supply => ms = 400 Money Demand => md = (1/4)Y + 100 - 5Si Consumption => Таx => Transfer Payment => TR = 60 Investment I = 300 – 10i => Government Spending G = 70 Net Exports => NX = 150 - (1/5)Y

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.1CE

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Question

From the following information, calculate the equilibrium values of Income (Y), interest rate (i) investment (I), net exports (NX), and money demand (md).

Goods Market
Money market
C = 200 + (4/5)YD
TA = (1/8)Y - 40
Money Supply => ms = 400
Money Demand => md = (1/4)Y + 100 - 5Si
Consumption =>
Таx
=>
Transfer Payment => TR = 60
Investment
I = 300 – 10i
=>
Government Spending G = 70
Net Exports
=>
NX = 150 - (1/5)Y

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