The economy of Egypt is measured in millions of dollars and is described by theC=75+0.75(Y - T)T= 601 = 80G = 120NX=5Y* = 890Find the output gap as a percentage.10.1%2.1%O-1.1%5.6%

The objective of the question is to calculate the output gap as a percentage for the economy of…

Answered: The economy of Egypt is measured in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Country S and Country T are two similar countries with the same working population equal to 100. Firms use the following production technology: Y= AK*N(1-») Where A is the TFP and it is set to 10, while a=0.5. In both countries, capital depreciates at a rate of 8=10% per period, but while the population in country S is stable over time, the population growth in country Tis 10% per period. a. Find the minimum level of investment per capita necessary at time t to raise the level of capital per capita in time t+1, knowing that both countries start with 1000 capital at time t. b. Suppose that in both countries, citizens save 10% of their income every year. Compute the long-run steady state equilibrium: What will be the output per capita? Which country will experience more economic growth in per capita terms? And in absolute terms? c. Once the countries reach their steady state, what will happen to economic growth? How can government achieve long-run growth? TIP: Answer to this question,…
1) The Cobb-Douglas production function is y = 22, with a > 0 and 3 > 0. Show that MP₁ = ay/2₁, MP₂ = By/22. What is the MRT S21? How does it vary with: (a) y:; (b) 22/21-
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Panel C Panel D 101.00 0.04 101.00 0.04 100.00 100.50 0.03 0.03 99.00 98.00 97.00 96.00 100.00 0.02 0.02 99.50 0.01 0.01 95.00 99.00 94.00 93.00 92.00 98.50 -0.01 -0.01 actual output (left axis) actual output (left axis) full-employment output (left axis) - full-employment output (left axis) -interest rate (right axis) interest rate (right axis) Assume that inflation is 1% throughout the entire year and the inflation target is 2%. In which of the four panels the interest rate set by the central bank is inconsistent with the Taylor rule? O A. panel A O B. panel B O C. panel C O D. panel D Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

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The economy of Egypt is measured in millions of dollars and is described by the C=75+0.75(Y - T) T= 60 1 = 80 G = 120 NX=5 Y* = 890 Find the output gap as a percentage. 10.1% 2.1% O-1.1% 5.6%