Question 1
In a certain economy, the components of planned spending are
given as:
Cd=600+0.8(Y-T)-350r, Ip=200-450r,...
Question 1
In a certain economy, the components of planned spending are
given as:
Cd=600+0.8(Y-T)-350r, Ip=200-450r, G=250, NX=20, T=300
Find the relationship between planned aggregate expenditure and the
real interest rate, r, and output, Y, in this economy. The real
interest rate, r, is set by the Reserve Bank to equal 0.05 (5 per
cent). Find the short-run equilibrium output.
Suppose potential output (Y*) is 4100. The Reserve Bank has set the
real interest rate equal to 5 per cent....
C= 0.8(1-t)Y,r=0.25,I=900-50r,G=900,L=0.25Y-62.5r and
m/p=500 (money market equilibrium)r=interest rate
a) what is the equation that describes the...
C= 0.8(1-t)Y,r=0.25,I=900-50r,G=900,L=0.25Y-62.5r and
m/p=500 (money market equilibrium)r=interest rate
a) what is the equation that describes the IS curve
b) define IS curve
c) define LM curve
d) calculate equilibrium levels of income Y and interest rate r
In the Keynesian Model assume the following information:
C=1000+0.5Yd I=300 G=200 T=100 here Yd=Y-T. Note that...
In the Keynesian Model assume the following information:
C=1000+0.5Yd I=300 G=200 T=100 here Yd=Y-T. Note that I, G, T,
represents private investment, Government spending and Taxes,
respectively. What are: (i) the total injections and (ii) total
leakages What is the equilibrium level of income, consumption, and
saving and disposable income Assume that the level of output is
1200 how does the economy adjust to equilibrium, specifically
mention inventory levels. Suppose private investment will decrease
by 150, by how much the...
Consider the example from the previous module:
C=350+0.75(Y-T)-1500r
I= 200-2500r, G=400, T=120+0.2Y
EX=80, IM= 70+0.15Y
L=50Y-800000R...
Consider the example from the previous module:
C=350+0.75(Y-T)-1500r
I= 200-2500r, G=400, T=120+0.2Y
EX=80, IM= 70+0.15Y
L=50Y-800000R
M=6000000, P=120, r=0.25
Recall that the equations for IS and LM curve for this example
were:
IS: Y= (1/0.55)/ (870-4000r)
LM: Y= (1/50) /( 50000+800000r)
Suppose the government is considering an expansionary fiscal
policy of increasing G by 44:
(a) Was the budget balanced before this policy? How can you say
so?
(b) If Fed does not do anything, how much is the crowding...
Consider permutations of the 26-character lowercase alphabet
Σ={a,b,c,d,e,f,g,h,i,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z}.
In how many of these permutations do
a,b,c...
Consider permutations of the 26-character lowercase alphabet
Σ={a,b,c,d,e,f,g,h,i,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z}.
In how many of these permutations do
a,b,c occur consecutively and in that
order?
In how many of these permutations does a appear before
b and b appear before c?