Y = C + I + G + NX (1)
C = α + β(1 − t)Y (α > 0; 0 < β < 1) (2)
I = θ − δi (θ > 0; δ > 0) (3)
G = g + T (g > 0) (4)
NX = (X − M) (5)
Using differential calculus: solve for the change in national GDP(Y) with respects to a change in government expenditure(g)
1. Consider the following economy of Syldavia (a small open economy) Y=C+I+G+NX , NX = S-I Y=8000 G=750 T=750 C=1000+0.75(Y-T) I=1000-100r NX=500-500e r=r*=5 d. [ 5 points] Suppose the world interest rate drop from r=5 to 2percent (assume government G=750). Find the national saving, investment, trade balance, capital outflow and equilibrium exchange rate.
Given Y = C +I +G+NX,C = C0 +bYd,I = I0,G = G0, and NX = NX0, where Yd = Y −T, and T = T0 +tY and C0 = 80, b = 0.5, I0 = 35 and G = 20, NX = 0, T0 = 30 and t = 0.20. Here T is the total amount of taxes the households have to pay with T0 being the fixed amount of taxes (regardless of income) and t is the tax...
The general solution to the second-order differential equation d2ydt2−4dydt+7y=0d2ydt2−4dydt+7y=0 is in the form y(x)=eαx(c1cosβx+c2sinβx).y(x)=eαx(c1cosβx+c2sinβx). Find the values of αα and β,β, where β>0.β>0.Answer: α=α= and β=β=
I need help with this.
1. In an economy which has a national income identity as the following; Y= C+ I + G + NX where C = 400 + 0.6 Yd,; 1 = 1000-4600 r, G-1240 T-200 +0.25 Y; NX-400-0.05Y-8 00 e ( ofcourse, Yd=Y-T) Where e- foreign currency/ domestic currency, and initially set at e 1.25+2.5R The money demand function is Md- 0.75 Y-7500 r, and money supply is set by the Central Bank at 450. All calculation...
Let Y = GDP (national income). In equilibrium, Y = C + I + G + X - M, with C + I + G represented on a domestic expenditure basis. If Y = C + I + G + X - M, then Y - (C + I + G) = X - M. If X - M > 0, then Y > C + I + G. For the country under consideration, is this country a borrower or...
using Y= C + I + G + NX
Also do the following GDP Problem: MPC = .95, Co = $1000 MPI = .03, lo = 250, G = 200, NX = -100, T = 150
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...
Question 24 (0.67 points) C = 100+ 0.9 (Y-T) 1 = 1000 G= 200 NX = - 100 T=50 Using the information above, if government officials increase G by 50 and increase taxes by 50, the equilibrium level of GDP will: (dollar amounts are in billions) a) be impacted, but we cannot determine the outcome due to conflicting spending patterns. b) increase by $50 billion since the impact of the change in G is stronger than the impact of the...
Real GDP C G NX 250 177 54 44 -25 240 170 54 44 -24 -23 230 163 54 44 200 142 54 44 72 -20 100 54 44 -10 The above table shows the real aggregate expenditure schedule at a given price level (that is, in constant dollars). C is consumption expenditure, I is investment, G is government purchases, and NX is net exports. Consumption and import are linear functions of real GDP (that is, their slopes are constant)....
Let α and β be real numbers with 0 < α < βく2m and let h : [α, β] → R>o be a continuous function that is always positive. Define Rh,a to be the region of the (x,y)-plane bounded by the following curves specified in polar coordinates: r-h(0), r-2h(0), θ α, and θ:# β. 3. (a) Show that (b) (c) depends only on β-α, not on the function h. Evaluate the above integral in the case where α = π/4...