Question

Given an economy described by the following set of equations. Y = C(Y - T) +...

Given an economy described by the following set of equations.

Y = C(Y - T) + I(r) + G

C = 200 + 0.80(Y - T)

I = 300 - 2r

G = 400

T = 200

(M/P)d = 0.80Y - 8r

Ms = 5,600

Price-level = P = 2

What is the equilibrium level of GDP?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Given an economy described by the following set of equations. Y = C(Y - T) +...
Given an economy described by the following set of equations. Y = C(Y - T) + I(r) + G C = 200 + 0.80(Y - T) I = 300 - 2r G = 400 T = 200 (M/P)d = 0.80Y - 8r Ms = 5,600 Price-level = P = 2 What is the equilibrium level of investment?
Given an economy described by the following set of equations. Y = C(Y - T) +...
Given an economy described by the following set of equations. Y = C(Y - T) + I(r) + G C = 200 + 0.80(Y - T) I = 300 - 2r G = 400 T = 200 (M/P)d = 0.80Y - 8r Ms = 5,600 Price-level = P = 2 What is the equilibrium level of consumption?
Given an economy described by the following set of equations. Y = C(Y - T) +...
Given an economy described by the following set of equations. Y = C(Y - T) + I(r) + G C = 200 + 0.80(Y - T) I = 300 - 2r G = 400 T = 200 (M/P)d = 0.80Y - 8r Ms = 5,600 Price-level = P = 2 What is the equilibrium level of consumption?
Suppose that the following equations describe an economy. Y = Cd + Id + G Cd...
Suppose that the following equations describe an economy. Y = Cd + Id + G Cd = 180 + 0.8(Y – T) Id = 140 – 8r + 0.1Y T = 400 G = 400 (Md/P) = 6Y – 120i MS = 6000 i = πe + r Assume expected inflation πe = 0 and price level P = 1. Find the equation for the IS curve. Find the equation for the LM curve. Find the equilibrium values for output...
An economy is initially described by the following equations: C = 500 + 0.75(Y - T);...
An economy is initially described by the following equations: C = 500 + 0.75(Y - T); I = 1000 - 50r; M/P = Y - 200r; G = 1000; T = 1000; M = 6000; P = 2; where Y is income, C is consumption, I is investment, G is government spending, T is taxes, r is the real interest rate, M is the money supply, and P is the price level. a. Derive the IS equation and the LM...
Suppose the economy is described by the following equations: ​C = 350 + .7(Y – T)...
Suppose the economy is described by the following equations: ​C = 350 + .7(Y – T) ​I = 100 + .1Y - 1000i ​G = 500; T = 500 Money Supply (M/P)s = 3200 ​Money Demand (M/P)d = 2Y – 4000i a.​Write an equation for the IS relation. b.​Write an equation for the LM relation. c.​Find the equilibrium levels of Y and i. d.​Write the Aggregate Demand equation for this economy with Y as a function of P. e. ​Suppose...
1. Consider an economy with the given equations. Y=C+I+GY=C+I+G C=112+0.6(Y−T)C=112+0.6(Y−T) I=120−10rI=120−10r (MP)d=Y−15r(MP)d=Y−15r G=$35G=$35 T=$45T=$45 M=$1200M=$1200 P=3.0...
1. Consider an economy with the given equations. Y=C+I+GY=C+I+G C=112+0.6(Y−T)C=112+0.6(Y−T) I=120−10rI=120−10r (MP)d=Y−15r(MP)d=Y−15r G=$35G=$35 T=$45T=$45 M=$1200M=$1200 P=3.0 a. Use the relevant set of equations to derive the IS curve and graph it. b. What is the equation for the IS curve? Y = c. Use the relevant set of equations to derive the LM curve. d. Calculate the equilibrium level of income (Y) and the equilibrium interest rate (r). Y= r (%)= e. Use the relevant set of equations to derive...
The US economy is represented by the following equations: Z=C+I+G, C=300+.5YD, YD =Y T T =400,...
The US economy is represented by the following equations: Z=C+I+G, C=300+.5YD, YD =Y T T =400, I =250, G=1000 Given the above variables, calculate the equilibrium level of output. Now assume that consumer confidence increases causing a rise in autonomous consumption (c0) from 300 to 500. What is the new equilibrium level of output? How much does income change as a result of this event? What is the multiplier for this economy?
3. Using the following information about the current economy: C = 130 + 0.80(Y-T) where: C:...
3. Using the following information about the current economy: C = 130 + 0.80(Y-T) where: C: consumption, Y: output I = 680 -1200r T: taxes, I: Investment, r: real interest rate T = 70 G: government G = 110 (M/P) d = 0.6Y – 960r where: (M/P) d : money demand Ms = 2364 Ms: money supply P = 1.0 P: price level (You must show the steps to derive these answers.) a. Derive the equation for the IS curve...
Consider an economy that is described by the following equations: C^d= 300+0.75(Y-T)-300r T= 100+0.2Y I^d= 200-200r...
Consider an economy that is described by the following equations: C^d= 300+0.75(Y-T)-300r T= 100+0.2Y I^d= 200-200r L=0.5Y-500i Y=2500; G=600; M=133,200; Pi^e=0.05. (Pi being the actual greek pi letter sign). Please solve part D and E (a) obtain the equation of the IS curve (b) obtain the equation of the LM curve for a general price level, P (c) assume that the economy is initially in a long-run (or general) equilibrium (i.e. Y=Y). Solve for the real interest rate r, and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT