Question

MacroEconomics - Can someone ask these questions please. Thank you!

For questions 6 to 9, use the following information: where Yn denotes disposable income where i denotes interest rato where y denotes total income or production Consumption: C = 100 + 0.5Y)) Investment: 1 = 50 - 5001 Tax minus transfer: T = 200 Government spending: G = 500 Real money demand: M = Y - 40001 Real money supply: M = 1000 where P - 1 where P = 1 6. Equilibrium output is a. 540 b. 550 c. 1080 d. 1100 7. Equilibrium interest rate is a, 0.5% b. 1% c. 1.5% d. 2% 8. At the equilibrium, private saving (9) is a. 340 b. 440 c. 540 d. 880 _ 9. At the equilibrium, ( TG) is . Hence, 1. 0; budget is balanced b. 300; there is a budget surplus c. 300: there is a budget deficit d. -300; there is a budget surplus e. -300, there is a budget deficit 10. The money demand curve will shift to the right when which of the following occurs? a, a reduction in the interest rate b. an increase in the interest rate c. an open market purchase of bonds by the central bank d. an increase in income c. an introduction of credit cards

Answer 1

tity - 100 to.sly-200) + 50 – 5001 +500 y = loptosy-10 + 50 - 5001+ 500 y = 550 tosy-sool 6.59=55o - suoi ly = 1100 - love Is curre 1P 720 1000 - ly = y - 40ool 1000 + 40001 ) Equating 1100 - 1000i = 1000 + 4000 100 = 40od is 1986 150 pd 1 -0.02 = loost 4000 (0.02) - 1000 + 80 = 1080 L (7 : Ang : d 21. 8 : y-c-u - to Private saving = y-6-T = 1080-540 - 500 - 1080 - 540 - 200 240

-9) T- u 200-Door Deficit. - 300 Ans! (e) Intent и ч амсолимо auses rise in demand до Алол Por money,