Answer : Equilibrium output (Y)= C +I+G+T
Y= 130+0.8Y +170+150+100= 300+250+0.8Y
Y =550+0.8Y
0.2Y =550
Y =550/0.2 =2750
Therefore, equilibrium output is 2750.
Suppose that the economy is characterized by the following behavioral equations: C= 130 + 0.8Y 1...
Suppose that the economy is characterized by the following behavioral equations: C = 120 + 0.90Y 1 = 160 G = 170 T = 80 Equilibrium GDP (Y)= (Round your response to two decimal places.)
Assume that the economy is characterized by the following behavioral equations C = 160 + 0.6YD , I = 150 , G = 150 , T = 100 a. Solve for equilibrium GDP (Y) b. Assume full employment output is equal to 900. Is the economy in an inflationary or deflationary gap? c. Show how fiscal policy can be used to get the economy to full employment.
Suppose that the economy is characterized by the following behavioral equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$: C = 160 + 0.6Yd I = 150 G = 150 T = 100 Solve for Equilibrium GDP (Y) Disposable income ( Yd ) Consumption spending ( C ) Multiplier for government expenditure and interpret it.
6. Suppose the economy is characterized by the following behavioral equations: C = 1,500+.6YD I= 2.000 - 10,000 G= 2,000 T= 2.000 a. At an interest rate of 10%, solve for equilibrium income (Y). disposable income (Y). consumption (C), investment (1), private saving, and public saving. b. What is the marginal propensity to consume in this economy? c. Now suppose that instead of taxes being a fixed quantity, taxes vary with income (as in many countries like the United States)...
2. A SIMPLE ECONOMY Suppose that the economy is characterized by the following behavioural equations: C = 160 + 0.6Yn 1 150 G 150 T= 100
Suppose that the economy is characterized by the following equations: C = 160 + 0.6Yd I = 150; G = 150; and T = 100: For the economy in the last problem above: (a) Assume that output is equal to 900. Compute total demand. Is it equal to output? Explain. (b) Assume that output is equal to 1000. Compute total demand. Is it equal to output? Explain. (c) Assume output is equal to 1000. Compute private saving. Is it equal...
The following equations describe the domestic economy: C 20+0.8Y I 0, G 0 X 0.03Y, and Q 0.3Y And the following equations describe the foreign economy: C" =2000.8Y I0, G =0, -75+0.25Y, and Q0.1Y X= Suppose the real exchange rates in both economies are fixed and equal to one. Find equilibrium Y and Y* b) Suppose that the domestic economy experiences a 10% drop in its autonomous consumption, a) i.e. the consumption function changes to C = 18+0.8Y Find the...
E. The following equations describe the domestic economy: C = 20+ 0.8Y I = 0, G =0, X = 0.03Y* and Q=0.3Y And the following equations describe the foreign economy: C* = 200+ 0.8Y I* = 0, G* = 0, X* = 75 +0.25Y, and Q* = 0.1Y* Suppose the real exchange rates in both economies are fixed and equal to one. 1. Find equilibrium Y and Y*. 2. Suppose that the domestic economy experiences a 10% drop in its...
Please provide the following answers (round response to nearest
two decimals):
1. Equilibrium GDP(Y)
2. Disposable Income (YD)
3. Consumption spending (C)
Suppose that the economy is characterized by the following behavioral equations: C = 180 + 0.70YD 1 = 190 G = 120 T = 100
1) Suppose an economy is characterized by the following equations. Y = C+/+G Y = 10,500 G = 800 TA = 1000 S = 1600+ 0.1(Y-TA) + 20001 1 = 600+ 0.20Y - 30001 Where Y is real GDP, G is government purchases of goods and services, S is total national savings, is the nominal rate of interest and I is total investment. There are no transfers in this economy and agents can only consume or save their income. a)...