Hi, i need help with part a and d only. Thanks

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Hi, i need help with part a and d only. Thanks

7. Consider the following two tables that describe Kazakhstan's economy, where Investment is equal to 246.4:
Budget
Balance Exports Exports
Тax
Net
Disposable Autonomous
Aggregate
Consumption Consumption
GDP
Revenues
Income
3000
180
-320
260
170
3000
130
3010
5000
300
-200
260
110
5000
130
4930
7000
420
-80
260
50
7000
130
6850
9000
540
40
260
-10
9000
130
8770
Derive the Budget Balance equation: Budget Balance =
Y -
b. Derive the NX equation: NX =
Derive the Consumption equation as a function of Yp: C =
YD
С.
d. Calculate Kazakhstan's equilibrium GDP in the AE model where prices are fixed. Round to the nearest
integer. Equilibrium GDP =
Treat the GDP you specified above as Kazakhstan's potential GDP (Y*). Now consider the following AS
and AD equations: YAD = 6466– 20P + 6G; Yas = 8974 + 4P – 4Pol
f.
If G = 500 and Poil = 45, the equilibrium price level in the economy is
g. Suppose the price of oil increases dramatically to $105. The new equilibrium price level will be
and equilibrium level of GDP is equal to
Transcribed Image Text:7. Consider the following two tables that describe Kazakhstan's economy, where Investment is equal to 246.4: Budget Balance Exports Exports Тax Net Disposable Autonomous Aggregate Consumption Consumption GDP Revenues Income 3000 180 -320 260 170 3000 130 3010 5000 300 -200 260 110 5000 130 4930 7000 420 -80 260 50 7000 130 6850 9000 540 40 260 -10 9000 130 8770 Derive the Budget Balance equation: Budget Balance = Y - b. Derive the NX equation: NX = Derive the Consumption equation as a function of Yp: C = YD С. d. Calculate Kazakhstan's equilibrium GDP in the AE model where prices are fixed. Round to the nearest integer. Equilibrium GDP = Treat the GDP you specified above as Kazakhstan's potential GDP (Y*). Now consider the following AS and AD equations: YAD = 6466– 20P + 6G; Yas = 8974 + 4P – 4Pol f. If G = 500 and Poil = 45, the equilibrium price level in the economy is g. Suppose the price of oil increases dramatically to $105. The new equilibrium price level will be and equilibrium level of GDP is equal to
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