Chapter 10, Problem 3CP

17. Given that C=$700+0.8Y, I=$300, G=$600, what is Y if Y=C+I+G?

Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all. Write explanation in paragraphs and if you use currency use USD currency:   10. What is the mechanism or process that allows the expenditure multiplier to “work” in theKeynesian Cross Model? Explain and show both mathematically and graphically. What isthe underpinning assumption for the process to transpire?

Use the Feynman technique throughout. Assume that you’reexplaining the answer to someone who doesn’t know the topic at all. Write it all in paragraphs: 2. Give an overview of the equation of exchange (EoE) as used by Classical Theory. Now,carefully explain each variable in the EoE. What is meant by the “quantity theory of money”and how is it different from or the same as the equation of exchange?

Zbsbwhjw8272:shbwhahwh Zbsbwhjw8272:shbwhahwh  Zbsbwhjw8272:shbwhahwhZbsbwhjw8272:shbwhahwhZbsbwhjw8272:shbwhahwh

Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:

Use the Feynman technique throughout. Assume that you’reexplaining the answer to someone who doesn’t know the topic at all: 4. Draw a Keynesian AD curve in P – Y space and list the shift factors that will shift theKeynesian AD curve upward and to the right. Draw a separate Classical AD curve in P – Yspace and list the shift factors that will shift the Classical AD curve upward and to the right.

Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:   10. What is the mechanism or process that allows the expenditure multiplier to “work” in theKeynesian Cross Model? Explain and show both mathematically and graphically. What isthe underpinning assumption for the process to transpire?

Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all: 15. How is the Keynesian expenditure multiplier implicit in the Keynesian version of the AD/ASmodel? Explain and show mathematically. (note: this is a tough one)

Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:  13. What would happen to the net exports function in Europe and the US respectively if thedemand for dollars rises worldwide? Explain why.