QNO: 3 Consider an economy discribed by the followng Equations Y= C +I+G. C= 250 + .75(Y-T) |= 1000-50r. a) In this economy Computé private saving, public saving and national saving b)Find equilibrium rate of interest c)Now Suppose that G rises to 1,250 Compute private, and National saving. d) find the new equilibrium. Y= 5000 G=1000 I=1000 7:42 pm

QNO: 3 Consider an economy discribed by the followng Equations Y= C +I+G. C= 250 + .75(Y-T) |= 1000-50r. a) In this economy Computé private saving, public saving and national saving b)Find equilibrium rate of interest c)Now Suppose that G rises to 1,250 Compute private, and National saving. d) find the new equilibrium. Y= 5000 G=1000 I=1000 7:42 pm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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u.edu.tr/mod/quiz/attempt.php?attempt=3214468&cmid%3D203021 Refer to the information provided in Figure 23.3 below to answer the question(s) that follow. amadı inden 270 miş 200 işaretle 130 60 450 100 200 300 Aggregate income (Y) Figure 23.3 Refer to Figure 23.3. The equation for the aggregate saving is Lütfen birini secin. O A S= -130 +0,4Y O B. S= 140 +05Y OC S= -80 +0.4Y ODS= -60 +03Y CES 200 +06Y Aggregate consumption (C)
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(1)The following macroeconomic model describes the economy of Sunderland. 1. Y= C +I + G + NX 2. C = 220 + 0.63 Y 3. 1 = 1000- 2000R 4. G = Go 5. NX = 525-0.10Y-50OR 6. M (0.1583Y-1000R)P (a)ls it a fair characterization to refer to equation #2 as a "simple" consumption function? Explain. (b)Derive the expression for equilibrium real output, Y, for this economy. Note: In your final expression for Y, restrict coefficient values to three decimal points. (c) Suppose government spending is 1200 , money supply by the Central Bank is 900 and the price level is 1, find the value of GDP (Y) and equilibrium interest rate (R) for Sunderland. Income Identity Consumption function Investment function Government Expenditure Net export function Money market equilibrium (2)The questions in this section are related to the macroeconomic model of Sunderland. (a)The expression you are asked to derive in question #1b can be considered an aggregate demand curve. Do you agree? Explain your answer. (b)Sketch…
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2. C = 50 + .8YD = 50 + .8(Y – T) %3D | = 150 %3D G = 200 T = 200 a) Calculate AY if AG = 100 (assuming that G could change all by itself). b) Calculate AY if AT = 100 (assuming that T could change all by itself). c) Calculate AY for AG = AT = 100.
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