The following set of equations describe an economy: C= 15,000 + 0.75(Y – T) – 45,000r Ip= 10,000 – 22,500r G= 8,200 NX= 1,800 T= 8,500 Y*= 82,100 Find PAE equation and what should be the interest rate to eliminate the output gap.

Q: Fill in the aggregate saving column in the following table. (Include a minus sign if necessary.)…

A: Consumer demand and consumption have historically fueled the American economy. When American…

Q: (M/P) d=Y-20r. M = 600. P = 2. 1. What are the equilibrium level of income and the equilibrium…

A: The equilibrium level of income is the point at which a business is able to sell all of the goods it…

Q: explain using a two period indifference curve how an individual would respond to an increase in…

A: The indifference curve is a graphic representation of all bundles of two goods/services that can be…

Q: DI (1) C $0 10 20 30 40 50 $4 11 DI 18 25 32 (2) с $0 SO $2 80 20 20 160 40 38 240 60 56 320 80 74…

A: A consumption schedule illustrates the combination of disposable income and consumption expenditure.…

Q: Suppose you have quarterly data on new housing starts, interest rates, and real per capita…

A: Housing starts implies new construction projects of residential complexes. It implies a leading…

Q: The reason for TVC curve to be S shaped is the law of ___________

A: # the total variable cost is one of the constituent of the total cost of the firm. The total cost of…

Q: Which of the following equations is the correct expression of the IS curve? a. Yao+Bo-B₁i+G 1-α₁…

A:

Q: 2.3 An economy shows the following functions, C = 200+ 0.75(Y-T) T=80+ 0.2Y 1 = 200-2000i G = N$300…

A: 2.3)IS equation condition;Y=C+I+G…

Q: Solve each of the following equations for x x+7=14 5x+4=24 12−4x=−20   Organize each of the…

A: The value of X can be solved as follows. X is 7. X is 4. X is 8.

Q: Calculate the optimal current and future consumption and the optimal current and future savings. Is…

A: Consumption and savings are the functions of income. Consumers will always try to increase their…