Use the following equations, and information, to answer the question which immediately follow. Y₁ = Y₁ -a(r, - p) + & r = i – Επι T = Et 17 +(Y - Y) + it = πt + P + 0x (T₁T) + Oy (Yt-Y) Assume that Y₁ = 100, p = 2.0, t 2.0, T a 0, As always, assume that the economy is initially in long run equilibrium. Assume also that there's an increase in tourist arrivals and the resulting shock.is given an absolute value of 4 and Y increases to 102. Note that you have to decide wheer the shock enters as a negative or a positive, and which equation will be affected. What is the value of rt in the long run? 2.0, π, 1 = π*, φ = 1, 0.25 0.25 and Oy Select one: a. 0 b. 1 c. 0.25 d. 2

Use the following equations, and information, to answer the question which immediately follow. Y₁ = Y₁ -a(r, - p) + & r = i – Επι T = Et 17 +(Y - Y) + it = πt + P + 0x (T₁T) + Oy (Yt-Y) Assume that Y₁ = 100, p = 2.0, t 2.0, T a 0, As always, assume that the economy is initially in long run equilibrium. Assume also that there's an increase in tourist arrivals and the resulting shock.is given an absolute value of 4 and Y increases to 102. Note that you have to decide wheer the shock enters as a negative or a positive, and which equation will be affected. What is the value of rt in the long run? 2.0, π, 1 = π*, φ = 1, 0.25 0.25 and Oy Select one: a. 0 b. 1 c. 0.25 d. 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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