please, i need answeer for all 4 questions Consider National-Income Model: National Income: Consumption: Investment: Government...
USU.US CUJL 1.ULTIUZULUV.CUIT 1. Points = 18 Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=Go T=f+jY 0<b<1 0<r<1 a> 0 in mln dollars; k>0 in mln dollars; Go >O in mln dollars f> 0 in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y) in reduced form (3 points); 3) If...
Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=GO T=f+jY <b<1 (<r<1 a>0 in mln dollars; k>O in mln dollars; Go >O in mln dollars fo in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y*) in reduced form (3 points); 3) If we know the parameters of the system, find the...
1. Points = 18. Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=Go T=f+jY 0<b<1 (<r<1 a> 0 in mln dollars; k>0 in mln dollars; Go >O in mln dollars p> 0 in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y) in reduced form (3 points); 3) If we know the...
1 through 6 is basicly one question which is divided up USU.US CUJL 1.ULTIUZULUVV.CUIT 1. Points = 18. Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=Go T=f+j Y 0<b<1 0<r<1 a> 0 in mln dollars; k>0 in mln dollars; Go >O in mln dollars f> 0 in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the...
it is all one question, please answer them all! thank you! 2. Points = 26. Consider Market Model: Demand: Supply: Q = a -6P Q=-c+dP (a, b>0) (c,d > 0) 1) Discuss in words the meaning of each equation in the model (3 points); 2) Find the equilibrium levels of P and Q (3 points); 3) Draw qualitative conclusions about changes in P and Q' when each of the parameters change. (Qualitative conclusion shows the direction of change.) Explain economic...
Consider Market Model: Demand: Supply: Q= a - bP Q=-c+dP (a, b > 0) (c, d > 0) * 1) Discuss in words the meaning of each equation in the model (3 points); 2) Find the equilibrium levels of P* and Q* (3 points); 3) Draw qualitative conclusions about changes in P* and Q* when each of the parameters change. (Qualitative conclusion shows the direction of change.) Explain economic meaning of these changes. (Total 6 points: 3 points for P*;...
2. Points = 26. Consider Market Model: Demand: Supply: Q=a-bP Q=-c+dP (a, b>0) (c,d > 0) 1) Discuss in words the meaning of each equation in the model (3 points); 2) Find the equilibrium levels of P* and Q* (3 points); 3) Draw qualitative conclusions about changes in P* and Q* when each of the parameters change. (Qualitative conclusion shows the direction of change.) Explain economic meaning of these changes. (Total 6 points: 3 points for P*; 3 points for...
2. Consider Market Model (а, b > 0) (c, d >0) Demand: Q%3Dа — БР Q%3D-с + dP Supply: 1) Discuss in words the meaning of each equation in the model 2) Find the equilibrium levels of P and Q* 3) Draw gualitative conclusions about changes in P* and Q' when each of the parameters change. (Qualitative conclusion shows the direction of change.) Explain economic meaning of these changes 4) If a 10, c 5, b = 2; d =...
4. Points = 18. Consider IS-LM Model: Real Sector: Y=C+I+G C = a +b (1-t) Y I=d-ei G=Go t-income tax rate i-rate of interest Money Market: Ma=M Ma= kY-li Mg = Mo Mo - exogenous stock of money 1) Setup the system of solutions in general form, with variables vector in the following order: Y, C, I, i; (6 points) 2) Now, suppose we have the following values of parameters: a = 10; b = 0.7; t = 0.2; d...
Consider IS- LM Model Real Sector: Y C+IG C ab (1-t) Y I d-e t-income tax rate i-rate of interest G Go Money Market: Md Ms Md kY - Ms Mo Mo - exogenous stock of money 1) Setup the system of solutions in general form, with variables vector in the following order: Y, C, I, i; (6 points) 2) Now, suppose we have the following values of parameters: a 10; b 0.7;t= 0.2; d 25; k 0.25;1 0.04; e...