An economy is described by the followingequations:Supply:Y=F(K,L)=6K^0.6L^0.4K=405, L=110Demand:C=231+0.8(Y-T)|=1161.0-129rG=150,T=120NX=125-490er=r*= 5A. What Is the level of GDP in this economy?B. How much are household savings?C. How much Is the government saving?D. How much is National Saving?E. How much is investment spending?F. Net capital outflow is:G. Equilibrium exchange rate is :Suppose G drops to 142, Find:H. National SavingI. InvestmentJ. New trade balanceK. New Equilibrium exchange rate

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A. What Is the level of GDP in this economy? B. How much are household savings? C. How much Is the government saving?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 4WNG

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Question

An economy is described by the following
equations:
Supply:
Y=F(K,L)=6K^0.6L^0.4
K=405, L=110
Demand:
C=231+0.8(Y-T)
|=1161.0-129r
G=150,T=120
NX=125-490e
r=r*= 5
A. What Is the level of GDP in this economy?
B. How much are household savings?
C. How much Is the government saving?
D. How much is National Saving?
E. How much is investment spending?
F. Net capital outflow is:
G. Equilibrium exchange rate is :
Suppose G drops to 142, Find:
H. National Saving
I. Investment
J. New trade balance
K. New Equilibrium exchange rate

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