Study Guide for Mankiw's Brief Principles of Macroeconomics, 7th
7th Edition
ISBN: 9781285864266
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 16, Problem 8PA
Subpart (a):
To determine
The initial effect of tax reduction on aggregate
Subpart (b):
To determine
The total effects of tax reduction on aggregate demand.
Subpart (c):
To determine
The comparison of total effects of tax reduction to the total effects of increase in Government purchases.
Subpart (d):
To determine
How can the Government increase aggregate demand without changing the government’s budget deficit.
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Now, let us assume that Brie has altruistic preferences. Her utility function is now given by:
1
UB (xA, YA, TB,YB) = (1/2) (2x+2y) + (2x+2y)
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Problema 4 (20 puntos):
Supongamos que tenemos un ingreso de $120 y enfrentamos
los precios P₁ =6 y P₂ =4. Nuestra función de utilidad es:
U(x1, x2) = x0.4x0.6
a) Planteen el problema de optimización y obtengan las
condiciones de primer orden.
b) Encuentren el consumo óptimo de x1 y x2.
c) ¿Cómo cambiará nuestra elección óptima si el ingreso
aumenta a $180?
Please draw the graph for number 4 and 5, I appreciate it!!
Chapter 16 Solutions
Study Guide for Mankiw's Brief Principles of Macroeconomics, 7th
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