Given the following functions;
S = -25 + 0.25y
I = 50 – 12.5r
Required;
Given the following functions; S = -25 + 0.25y I = 50 – 12.5r Required; What...
2. A version of the "IS-LM macroeconomic model leads to the system of equations: 1. 1 (r) = S(Y) 2.aY + L(r) = M where a is a parameter, and I,S, and L are given differentiable functions. Suppose that the system defines Y and r implicitly as differentiable function of a and M. find ov and ar ам 2. A version of the "IS-LM macroeconomic model leads to the system of equations: 1. 1 (r) = S(Y) 2.aY + L(r)...
Consider an economy where the IS curve is given by the following equation: i = (C+I+G-mT+b(pie)^e)/b - ((1-m)Y/b) And the LM Curve is given by the following equation: i = (M + (M/P))/h + (k/h)Y In a Standard AS-AD Framework: a) Derive AD Curve. what are the slope and intercept of this curve? b) Derive the labour demand curve if the production function is given by F(L) = L^1/2. Illustrate the labour market graphically. c) Assuming the classical paradigm and...
Question 1: General Equilibrium in closed and open economies [50 marks] Consider the following closed Keynesian economy Desired consumption, Cd = 1000 + 0.6(Y-T) - 300r; Desired investment, Id = 600 - 300r; Money deman d, L = 0.6Y - 300r; Output, Ȳ = 4000; Expected inflation, πe = 0; Assume that we are in a closed economy. Suppose that T = G = 300 and M = 8000. Find the equilibrium values of output, consumption, investment, the real interest...
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...
And the LM curve is given by the following equation: In a standard AS-AD framework: Explicitly derive the AD curve. What are the slope and intercept of this curve? Derive the demand for labor if the production function is given by F(I)-11/2 Illustrate the labor market graphically. Assuming the Classical Paradigm and that the economy consists of 100 total individuals (workers), derive the AS curve. Define equilibrium in words and solve for all equilibrium values. Which of the following two...
Consider the following economy with: Real Money demand 〖 (M/P)〗^d = – 12 R + 0.38 Y Real Money supply (M^s/P)= 4510 Derive the LM curve Derive the LM curve when the money supply increases by 680. Derive the LM curve when money supply decreases by 12% Compare the LM curves from a, b and c by graphing them using any graphing tool (excel preferably). Comment on the differences. Find the value of money demanded when income Y = 15,000...
I. Discrete distribution for X' is given by the following table 0.5 20 0.2 50 0.1 80 Probability p Value A Find distribution function 00 and median Meo. Calculate mathematical expectation (the mean) M00, variance (dispersion) Dro, standard error σ(X), asymmetry coefficient As(O and excess Exeo. 0.2 10
Need the answer from question 5 to 9, do not put the answer from 1 to 4, please. Question1 Consider the following economy of Hicksonia. 1. The consumption function is given by C 200 + 0.75(Y-T). The investment function is 1 = 200-2500. Government purchases and taxes are both 100. Derive the IS curve 2. The money demand function in Hicksonia is (Md/P)-Y-10000 The money supply (M) is 1,000. Derive the LM curve under an arbitrary value of P (Hint:...
Liquidity Trap in the IS-LM Model (50 points) Consider a closed economy in which output is the sum of consumption, investment and government purchases Y = C + I + G, and where C, I and G are respectively given by C = 5000 – 2000 r + 0.8(Y– T), I = 1500 – 3000 r, and G = 2500. Note also that lump-sum taxes T are given by 1250. (a) (5 points) Recalling that national savings equals S =...
Question 1. (i) The demand and supply functions for a good are given by D = 50 - 0.5P and S = 20 +0.25P (Where P is price) (a) Calculate quantity demanded when price is Rs 10 (b) Calculate quantity supplied when price is Rs 20 (c) Calculate the equilibrium prices and quantities (d) Calculate the shortage/ surplus if government imposes a regulatory price of Rs 60. (e)If the demand curve shifts to D' = 100 - 0.5P, compute the...