The equilibrium GDP .

Question

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Answer 1

Question

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

b)

To determine

To Calculate: The equilibrium GDP.

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

c)

To determine

To Calculate: The equilibrium GDP.

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

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Answer 2

Question

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

b)

To determine

To Calculate: The equilibrium GDP.

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

c)

To determine

To Calculate: The equilibrium GDP.

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

b)

To determine

To Calculate: The equilibrium GDP.

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

c)

To determine

To Calculate: The equilibrium GDP.

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

b)

To determine

To Calculate: The equilibrium GDP.

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

c)

To determine

To Calculate: The equilibrium GDP.

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

b)

To determine

To Calculate: The equilibrium GDP.

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

c)

To determine

To Calculate: The equilibrium GDP.

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Answer 6

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Answer 7

Chapter 13, Problem 8TY

a)

To determine

To calculate: The equilibrium GDP.

Answer 8

a)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,192 for the rate of interest at 2 percent (r=0.02)

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Substituting the values of rate of interest 2 percent (r=0.02)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(r) =1,000−2 = 998

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+998+0+0 =300+0.75Y+998 =1,298+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,298Y(1−0.75)=1,298 0.25Y=1,298 Y=12980.25 Y= 5,192

Therefore, the equilibrium level of GDP is $5,192 at rate of interest 2 percent (r=0.02) .

Answer 13

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Answer 14

b)

To determine

To Calculate: The equilibrium GDP.

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Answer 15

b)

To determine

To Calculate: The equilibrium GDP.

Answer 16

b)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,180 for the rate of interest at 5 percent (r=0.05)

Answer 17

b)

Expert Solution

Answer 18

b)

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Substituting the values of rate of interest 5 percent (r=0.05)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.05) =1,000−5 = 995

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+995+0+0 =300+0.75Y+995 =1,295+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,295Y(1−0.75)=1,295 0.25Y=1,295 Y=12950.25 Y= 5,180

Therefore, the equilibrium level of GDP is $5,180 at rate of interest 5 percent (r=0.05)

Answer 21

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Answer 22

c)

To determine

To Calculate: The equilibrium GDP.

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.

Answer 23

c)

To determine

To Calculate: The equilibrium GDP.

Answer 24

c)

Expert Solution

Answer to Problem 8TY

The equilibrium level of GDP is derived as $5,160 for the rate of interest at 10 percent (r=0.10)

Answer 25

c)

Expert Solution

Answer 26

c)

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

Substituting the values of rate of interest 10 percent (r=0.10)

in the investment function and the total investment is being calculated as follows:

I=1,000−100r =1,000−100(0.10) =1,000−10 = 990

The equilibrium level of GDP is derived as follows:

Y=(300+0.75Y)+990+0+0 =300+0.75Y+990 =1,290+0.75Y

By bringing the variable Y

to the left hand side:

Y−0.75Y=1,290Y(1−0.75)=1,290 0.25Y=1,290 Y=12900.25 Y= 5,160

Therefore, the equilibrium level of GDP is $5,160 at rate of interest 10 percent (r=0.10)

Answer 29

Economics Concept Introduction

Introduction: The Gross Domestic Product (GDP) is the summation of market values, which includes the final services and goods for a period of time, in an economy.