What is the expression for equilibrium output

Assignment Help Basic Computer Science
Reference no: EM131220311

Suppose the economy is given by: 

C=c0 + c1(Y-T)

T=t0 + t1Y 

I= i 

G=T

with 0 < c1 < 1, 0 < t1 < 1

a. What is the expression for equilibrium output. What is the multiplier?

b. Suppose that G=G(Bar) (G is an exogenous constant). What is an expression for equilibrium output and the multiplier. Is it larger, smaller or equal to the multiplier derived in part a? 

c. how is answer to b. related to where the balanced budget requirement is destabilizing? Is the economy more stable when G=T or when G=G(bar)?

Reference no: EM131220311

Questions Cloud

Use of artificial conception within marriage : Explain two contrasting beliefs in contemporary British society about the use of artificial conception within marriage?
Journalize the purchase of raw materials for march : Andrew industries purchased $165,000 of raw materials on account during the month of March. The beginning raw materials inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and 13,000 ..
Analyze the effects on the equlibrium quantity : Analyze the effects on the equlibrium quantity, producer price Pn, and consumer price Pg of a $1 per unit tax on producers. What is the tax revenue?
Explain difference between cash and accrual basis accounting : Explain the difference between cash-basis and accrual-basis accounting. Assume you are a business owner of the type of business you would like to own, what method would you prefer, and defend your answer.
What is the expression for equilibrium output : a. What is the expression for equilibrium output. What is the multiplier? b. Suppose that G=G(Bar) (G is an exogenous constant). What is an expression for equilibrium output and the multiplier. Is it larger, smaller or equal to the multiplier deriv..
Partnership by making capital contributions : Bill Beck, Bruce Beck, and Barb Beck formed the BBB Partnership by making capital contributions of $74,700, $290,500, and $464,800, respectively. They predict annual partnership net income of $492,000 and are considering the following alternative pla..
Predict strategies and reactions of competitors : How difficult is it to predict strategies and reactions of competitors in the fast movers consumer goods industry? While a company may know its competitors will be looking for ways to modify and improve their products,
Write an interoffice memorandum and an e-mail : Purpose - This examination will evaluate your ability to write an interoffice memorandum and an e-mail
Effect of the division of labor : Adam Smith argued that at birth most people were similarly talented, and that differences in individual abilities, and hence productivity, are largely the effect of the division of labor, not its cause. What implications does that insight have for..

Reviews

Write a Review

 

Basic Computer Science Questions & Answers

  Explaining significance of automating boundary

In System Analysis and Design: Automation Boundary - Why is the automating boundary significant?

  Create a program called tokens.java

Create a program called Tokens.java that will receive any text file name as a command line argument and display all the unique tokens (separated by space/s) there are in the given text file

  Build a requirements model of the system

Do a few hours of research on the application area and conduct a FAST meeting (Chapter 11) with your fellow students to develop requirements (your instructor will help you coordinate this). Build a requirements model of the system using structured..

  Who was considered the first programmer

Describe Babbage's contribution to the history of computers.Who was considered the first programmer? Describe her contributions to the history of computers

  A calculator application that allows prefix, infix and postf

A calculator application that allows prefix, infix, and postfix expressions to be evaluated (i.e., allows all 3 types of expressions

  Project life cycle model to create game plan

Explain in scholarly detail how you would apply project life cycle model to create a game plan for developing different project.

  Relation suppliers containing the attributes supplierid

Given the relation Parts containing the attributes PartName, PartNumber, and SupplierID as well as the relation Suppliers containing the attributes SupplierID, Address, FaxNumber, write a sequence of SELECT, PROJECT, and JOIN operations to obtain ..

  Create a pseudo code users allow

Please create a pseudo code that would allow users to enter and submit survey (to store in the database) and display survey results of total entered surveyed

  Which is not true about the telecommunications act of 1996

Under the rate-of-return regulation, plant depreciation is handled by subtracting the depreciation from the rate base and by the application of return on capital investment. Which of the following is not true about the Telecommunications Act of 1996...

  Develop in accordance with the sdlc

A description of the current information systems that the company has to support the business. The description should include an overview of the following:

  Write program to enter two separate numbers

Write a program which would permit a user to enter two separate numbers and choose one of four mathematical operations (add, subtract, multiply, divide).

  How might the internet impact business

How might the Internet and associated World Wide Web impact business in the United States and thereby ultimately impact the U.S. economy

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd