Reference no: EM131022132
Quiz 4-
1. Suppose that an economy can be described with the following information:
C = 50 + .75(Y - T)
T = 20
G = 100
I = 60
X - M = 20
where C is consumption spending, Y is real GDP, T is autonomous taxes, G is government spending, I is investment spending, and (X - M) is net exports.
a. Given the above information, what is the equilibrium level of real GDP in this economy? Assume that the aggregate price level is constant in this economy. Show your work for full credit.
b. Holding everything else constant, what is the equilibrium level of private saving in this economy? Show your work for full credit.
c. Suppose the full employment level of real GDP for this economy is 900. Given your answers in (a) and (b) and the above information answer this next set of questions.
i. This economy is in a (boom, recession).
ii. This economy's actual unemployment rate is (greater than, less than, equal to) the natural rate of unemployment.
iii. Given the above information and holding everything else constant, if this economy attempts to produce at the full employment level of output inventories will (increase, decrease, be unchanged).
d. Suppose that policymakers in this economy decide to use government spending to reach the full employment level of output. What must the change in government spending be if the economy is to reach full employment, holding everything else constant? Show your work for full credit.
e. Suppose government policymakers decide to reach full employment solely through changes in autonomous taxes. Explain verbally whether taxes will need to be increased or decreased to reach this goal.
2. Suppose the loanable funds market is initially in equilibrium. Then suppose the government increases the size of the deficit. Holding everything else constant, what do you predict will happen to the level of private investment and the level of the interest rate?
3. Suppose the loanable funds market is initially in equilibrium. Then suppose the trade deficit is reduced. Holding everything else constant, what do you predict will happen to the level of private investment and the level of the interest rate?
Difference between a business plan and an acquisition plan
: Explain the difference between a business plan and an acquisition plan. Why is it important to get senior management heavily involved early in the acquisition process?
|
Handled like a mini-trial
: Which of the following is handled like a mini-trial? (a) Arbitration (b) Mediation
|
What is the equation for country production possibility
: What is the equation for the market demand for this good if there are only these three individuals in the market - What is the equation for Country A's production possibility frontier?
|
S03 human growth and development i
: S03 Human Growth and Development I, Consider the lifespan development process and describe the following changes in the infant from content supported in your text. Physical changes, Cognitive changes
|
What is the equilibrium level of real gdp in this economy
: Given the above information, what is the equilibrium level of real GDP in this economy? Assume that the aggregate price level is constant in this economy. Show your work for full credit
|
What is minimum input step size that will ensure triggering
: Use capacitors of 0.1 nF and 1 nF. Wherever possible, choose resistors of 100 kΩ in your design. Diodes have a drop of 0.7 V. What is the minimum input step size that will ensure triggering? How long does the circuit take to recover to a state in ..
|
What are the risks or dangers
: What are the risks or dangers of not responding to the news media even when the information is negative to your organization? Why is it best to tell one's own bad news?
|
Nursing interventions in the assessment
: Prepare a research Paper on Nursing Interventions in the Assessment, Treatment, and Prevention of Delirium.
|
Find the face value of the bond
: An investor owns a $3000 par-value 12% bond with semiannual coupons. The bond will mature at par at the end of fourteen years. The investor decides that a ten-year bond would be preferable. Current yield rates are 6% convertible semiannually. The inv..
|