Intermediate Macroeconomics Given: C= 100+0.9(Y-T) I= 300-200r G= 200 T=200 Ms= 100 Md= 40+0.1Y=10r (The original...
Intermediate Macroeconomics
Given:
C= 100+0.9(Y-T)
I= 300-200r
G= 200 T=200
Ms= 100 Md= 40+0.1Y=10r
(The original one has Y=771.428 and r=1.71428)
Suppose taxes decreased by 20% and the money supply decreased by 20%. What is the effect on equilibrium income and interest rate. Explain by drawing graph and compare with the original graph.
Homework Answers
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Intermediate Macroeconomics
Given:
C= 100+0.9(Y-T)
I= 300-200r
G= 200 T=200
Ms= 100 Md= 40+0.1Y=10r
(The original...
Labor Market and Production: Wage=100-N Wage=25+2N Y=A*K.5N.5 Goods Market: C=50+2/3(Y-T)-200r I=100-200r G=70 T=50 Asset Market: MS=245/P...
Labor Market and Production: Wage=100-N Wage=25+2N Y=A*K.5N.5 Goods Market: C=50+2/3(Y-T)-200r I=100-200r G=70 T=50 Asset Market: MS=245/P MD=1/2(Y)-100r a. Suppose that the current capital-labor ratio is 1 (the amount of capital exactly equals the number of workers) and that the total factor productivity (technology) equals 20. What are the equilibrium wage, employment level, and the full employment level of output? Draw this all graphically and make sure to label the graph
6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5...
Answer the question (c)
6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5000 T = 5000 MD MS = 60.000 CA = NX = 2000-0.1Y-1000e KA = 5500+ 2(r-r") r"--10 (a) Derive the IS curve (Y as a function of r and e), LM curve (Y as a function of r) and the BP curve (r as a function of Y, e, and the capital mobility parameter z)...
Assume the following equations summarize the structure of an economy. C =Ca +0.7(Y-T) Ca = 2,000...
Assume the following equations summarize the structure of an economy. C =Ca +0.7(Y-T) Ca = 2,000 - 5r T = 150 + 0.15Y (M/P)d = 0.3Y - 10r MS/P = 3,000 i = 2,000 -10r G = 4,000- .2y NX = 1,500 - 0.1Y- 5r A. Calculate the equilibrium real output (Y) and (r). B. If government spending increases by 100, compute by how much the fed must increase the money supply if it wants to avoid the crowding out...
KEYNESIAN MACROECONOMICS ( THE ROLE OF AGGREGATE DEMAND Derive and compare the mutipliers for two-secto...
KEYNESIAN MACROECONOMICS ( THE ROLE OF AGGREGATE DEMAND Derive and compare the mutipliers for two-sector, three sector and four-sector economies Assume a 2 Suppose that for a particular economy C 2500 T-2500 G 2500 3000 a) Determine the equlbrium income and show it graphicaly Detemine thegovemment budget b) Has the economy achieved ful employment equilibrium income a employment is 350007 Whr )taxes are reduced? What is the new budget and the new funcion forax Show the outcomes graphically C- 200...
1. Suppose an economy is represented by the following equations: C=500+.75(Y-T) I=1000 -50r (M/P)d=Y-200r G=1000 T=1000...
1. Suppose an economy is represented by the following equations: C=500+.75(Y-T) I=1000 -50r (M/P)d=Y-200r G=1000 T=1000 M=6000 P=2 Use these equations to derive both the IS and LM curves. Suppose that a newly elected president cuts taxes by 20%. Assuming that the money supply is held constant, what is the equilibrium interest rate in this economy? Round your answer to the nearest tenth. Do not use a percent sign when entering your answer. Your answer should not be given as...
5. (357.) Le C+I+G 300 + Y –T) T = 1 I = 100+ -y -...
5. (357.) Le C+I+G 300 + Y –T) T = 1 I = 100+ -y - 2000 G = 200 i = 0.05 (2) Derive the equation for the IS curve and find the value of the multi- plier? (b) Find the equilibrium solution for aggregate output. (c) What would be the effect on output of rise in autonomous consump- tion from 300 to 320? Explain your answer. (d) Taxes are taken to be proportional to output in the above...
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Question 69 1 pts Suppose C - 170 +0.60YD, I = 100 - 4i, Md = 0.75Y - 6i, MS - 735, P-1, T - 200, G = 350. The equation for equilibrium in the financial markets: Y = 1250 - 101. Y = 1250 + Bi. Y = 980 + Bi. Y = 1250 + 101. OY-980 - 8i.
Question 82 1 Suppose C 170 + 0.60YD, I 100- 4i, Md 0.75Y-6i, MS 735, P...
Question 82 1 Suppose C 170 + 0.60YD, I 100- 4i, Md 0.75Y-6i, MS 735, P 1, T = 200, G = 350. The equilibrium level of output (Y), the interest rate (i), investment (I) and consumption (C) are, respectively: Y=1200; i - 15;1- 20; C 710. Y=1100; i = 5; I = 40; C = 700. Y-1100; i- 15;I-40; C 710. Y-1200; i = 15; I = 40; C = 710. OY-1000; i- 10;1-40; C =600.
The following equations describe an economy. Y=C+I+G C=50+0.75*(Y-T) I=150-10r (M/P)d=Y-50r G=250 T=200 M=3,000 P=4 Identify each...
The following equations describe an economy. Y=C+I+G C=50+0.75*(Y-T) I=150-10r (M/P)d=Y-50r G=250 T=200 M=3,000 P=4 Identify each of the variables, and briefly explain their meaning. From the above list, use the relevant set of equations to derive the IS curve. Graph the IS curve on an appropriately labeled graph. From the above list, sue the relevant set of equations to derive the LM curve. Graph the LM curve on the same graph you used in part b). What are the equilibrium...
Question Two: Assume the following equations summarize the structure of an economy. С C+0.7(Y-T) са 2,000...
Question Two: Assume the following equations summarize the structure of an economy. С C+0.7(Y-T) са 2,000 - 5r T 150 +0.157 (M/P)+ - 0.3Y - 10r MS/P 3,000 2,000 -10r G 4,000 - 2y NX - 1,500 -0.1 Y-5r A. Calculate the equilibrium real output (Y) and (r). B. If government spending increases by 100, compute by how much the fed must increase the money supply if it wants to avoid the crowding out of expansionary fiscal policy. Make sure...
Answer the question (c)
6. An open economy is described by the following equations C = 1000 + 0.6(Y-T) I 20, 000 200r G 5000 T = 5000 MD MS = 60.000 CA = NX = 2000-0.1Y-1000e KA = 5500+ 2(r-r") r"--10 (a) Derive the IS curve (Y as a function of r and e), LM curve (Y as a function of r) and the BP curve (r as a function of Y, e, and the capital mobility parameter z)...
KEYNESIAN MACROECONOMICS ( THE ROLE OF AGGREGATE DEMAND Derive and compare the mutipliers for two-sector, three sector and four-sector economies Assume a 2 Suppose that for a particular economy C 2500 T-2500 G 2500 3000 a) Determine the equlbrium income and show it graphicaly Detemine thegovemment budget b) Has the economy achieved ful employment equilibrium income a employment is 350007 Whr )taxes are reduced? What is the new budget and the new funcion forax Show the outcomes graphically C- 200...
5. (357.) Le C+I+G 300 + Y –T) T = 1 I = 100+ -y - 2000 G = 200 i = 0.05 (2) Derive the equation for the IS curve and find the value of the multi- plier? (b) Find the equilibrium solution for aggregate output. (c) What would be the effect on output of rise in autonomous consump- tion from 300 to 320? Explain your answer. (d) Taxes are taken to be proportional to output in the above...
Question 69 1 pts Suppose C - 170 +0.60YD, I = 100 - 4i, Md = 0.75Y - 6i, MS - 735, P-1, T - 200, G = 350. The equation for equilibrium in the financial markets: Y = 1250 - 101. Y = 1250 + Bi. Y = 980 + Bi. Y = 1250 + 101. OY-980 - 8i.
Question 82 1 Suppose C 170 + 0.60YD, I 100- 4i, Md 0.75Y-6i, MS 735, P 1, T = 200, G = 350. The equilibrium level of output (Y), the interest rate (i), investment (I) and consumption (C) are, respectively: Y=1200; i - 15;1- 20; C 710. Y=1100; i = 5; I = 40; C = 700. Y-1100; i- 15;I-40; C 710. Y-1200; i = 15; I = 40; C = 710. OY-1000; i- 10;1-40; C =600.
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