20. Assume that an economy is characterized by the following equations: a. C=100+(2/3)(Y-T) T=600 G=500 I=800-(50/3)r M/P=M/P=0.5Y-50r Write the numerical IS curve for the economy, expressing Yas a numerical function of G, T, and r. b. Write the numerical LM curve for this economy, expressing as a function of Y and MP. C. Solve for the equilibrium values of Y and r, assuming P= 1.0 and M=1,200. How do they change when P=2.0? Check by computing C, I, and G.
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- Assume that an economy is characterized by the following equations: C= 100 + (2/3XY -T) T= 300 G = 500 1 = 800- (50/3)r M IP 0.5Y- 50r a. Write the numerical IS curve for the economy. b. Write the numerical LM curve for the economy, assuming P=1 and M=1,200. c. Solve for the equilibrium values of Y and r.Linear equations for the consumption and saving schedules take the general form C = a + bY and S = -a + (1 - b)Y, where C, S, and Y are consumption, saving, and national income, respectively. The constant a represents the vertical intercept, and b represents the slope of the consumption schedule.a. Use the following data to substitute numerical values for a and b in the consumption and saving equations. b. What is the economic meaning of b? Of (1 - b)? c. Suppose that the amount of saving that occurs at each level of national income falls by $20 but that the values of b and (1 - b) remain unchanged. Restate the saving and consumption equations for the new numerical values, and cite a factor that might have caused the change.12 ints Skipped The following set of equations describe an economy: C = 15,000 +0.5(YT) 50,000r IP = 10,000 25,000r G = 8,000 NX = 2,000 T Y* = 8,200 46,800 a. Find a numerical equation relating planned aggregate expenditure to output and to the real interest rate. eBook Print PAE=[ (Click to select) (Click to select) Y References b. At what value should the Fed set the real interest rate to eliminate any output gap? (Hint: Set output Yequal to the value of potential output given above in the equation you found in part a. Then solve for the real interest rate that also sets planned aggregate expenditure equal to potential output.) Instructions: Enter your response as a whole number. Real rate of interest: %
- Briefly explain the reason for the near-horizontal shape of the SRAS curve on its far left.Name some factors that could cause the SRAS curve to shift, and say whether they would shift SRAS to the right or to the left.4. Assume the following model of the expenditure sector: AD=C+I+G+NX C = 420 + (4/5)YD YD=Y–TA+TR TA = (1/6)Y TRo = 100 Io = 160 Go = 180 NXo =–40 b) Assume we want to reach Y* = 2700 by changing government transfer payments (TR) instead. By how much should TR be changed?
- Consider an economy described by the following equations:Y=C + I +GY=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50rb. Calculate the equilibrium interest rate. c. Now suppose the G rises by 1,000. Compute private saving, public saving, andnational saving.d. Calculate the new equilibrium interest rate.For these 3 questions please only show the graphical response.(Four Sector Model) : The major macro aggregates for an economy are given as follows : Consumption, C = 60 + 0.8Y,(Y,is disposable income) Investment I = 100 – 5i % Interest rate i = 6 Imports Government expenditure, G= 76 M=12+0.2Y Lump-sum Tax, T= 15 Transfer payments, TR = 60 1. Derive the IS curve using the abo ve data Еxports X = 70 2. Calculate equilibrium level of inc ome 3. Calculate foreign trade multiplierSuppose you are given the following information for an economy without government spending, exports, or imports. Cis desired consumption, Iis desired investment, and Y is inoome. Cand i are given by C=400 +06Y 1-300 a. What is the equaion for the aggregate expendture (AE) function? (Round your response for the intercept tem to the nearest whole number and for the siope tem to one decimal place) AE CY
- n year 2018, the government of Qatar spent is 143 billion Qatari Riyal (the national currency of Qatar). The GDP of Qatar in the same year is 1,121 billion Qatari Riyal. Qatar's desired consumption and desired investment during the year can be summarized by the following equations: Cd=1,000-5,000r Id=800-3000r Where Cd is the desired consumption in billions of Qatari Riyal, Id if the desired investment in billions of Qatari Riyal, and r is the real interest rate in decimal form. What is the equilibrium real interest rate r* in %? round to at least 2 decimal placesWhat is the Euler equation for consumption, and what is its economicinterpretation?The figure below shows a simple macroeconomic consumption model. The letters N and D indicate curves, the letters T, A, L and Q denote (intersection) points. The "auxiliary triangles" marked in burgundy mean that if the value of the horizontal section shown in them is considered to be 1, the value of the vertical sections is s and r, respectively. It is known that L is 100 and ris 0.75. T 45° A 1 Give the equation of the savings function: S= (use a decimal point and 2 decimals if needed, and write capital letters as an unknown variable) How much is the value of A on the X axis?