Assume that an economy is characterized by the equations

Assignment Help Business Economics
Reference no: EM131006088

Assume that an economy is characterized by the following equations: C = 100 + (2/3)(Y − T ) T = 600 G = 500

I = 800−(50/3)r Ms/P = Md/P = 0.5Y −50r

(a) Write the numerical IS curve for the economy, expressing Y as a numerical function of G,T, and r.

(b) Write the numerical LM curve for this economy, expressing r as a function of Y and M/P.

(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. d. Write the numerical aggregate demand curve for this economy, expressing Y as a function of G, T , and M/P .

Reference no: EM131006088

Questions Cloud

The casino filed a motion to dismiss : Scanlon was a patron of a casino owned by Mashantucket Pequot Gaming Enterprise. A casino employee watching surveillance cameras saw Scanlon standing on a box on a balcony. Concerned about his safety, two security guards went to investigate. His heir..
What will be its output under this form of taxation : A monopolist has an inverse demand curve given by p(y) = 12 - y and a cost curve given by c(y) = y2. What will be its profit maximizing level of output? Suppose the government decides to put a tax on this monopolist so that each unit it sells has to ..
Construction and working of fabry perot interferometer : Construction and working of Fabry perot interferometer
What are the requirements to prove an extortion case : Expain 4 different times- What are the requirements to prove an extortion case
Assume that an economy is characterized by the equations : Assume that an economy is characterized by the following equations: C = 100 + (2/3)(Y − T ) T = 600 G = 500. Write the numerical IS curve for the economy, expressing Y as a numerical function of G,T, and r.
Point income elasticity of demand : 1. Estimate an empirical demand function for one-month memberships using the data gathered from the firm's 24 clubs. (Assume the demand function is linear. Further assume that the only variables likely to significantly affect the demand for one-mo..
Find the unit vectors in the directions of steepest descent : Find the unit vectors in the directions of the steepest descent and the steepest ascent at (2, 4). Mark these directions on the graph in (b). Verify that the gradient at (2, 4) is orthogonal to the level curve through this point.
Find parametric equations of the straight line : Find parametric equations of the straight line that passes through the point A (1, 5, -3) and is orthogonal to the plane 2x + y - 3 z = 2 and At what point does this line intersect the plane?
Home versus foreign countries while they remain in autarky : What is the difference between relative factor endowments and relative factor intensities?  What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky? What happened to the Leontief paradox when human ca..

Reviews

Write a Review

Business Economics Questions & Answers

  The city library in amritsar has several private study

The City library in Amritsar has several private study rooms which are freely available to clients.

  Money into a still-choked financial system

The New Zealand dollar pushed toward U.S.55c yesterday as the greenback was dumped on a surprise U.S. Federal Reserve initiative to pump more money into a still-choked financial system.

  Monopolist instead of set of perfectly competitive firms

What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..

  Short run costs-find the cost minimizing capital-labor ratio

A firm’s short-run cost function is C(q)=200q-6q^2+0.3q^3+400. Determine the fixed cost, F; the variable cost function, AVC; the average cost, AC; the marginal cost, MC; and the average fixed-cost, AFC. (Mathematical problem) Replace the production f..

  Coordination needed to reduce dollar exchange rate requires

Suppose the Bank of Japan (BOJ) and the Federal Reserve Bank decide to coordinate policy in an effort to lower the dollar exchange rate (that is, to reduce the number of Japanese yen needed to purchase one dollar). The policy coordination needed to r..

  Demand function for hot dogs and demand function for sodas

Tina is very particular about her purchases: She only buys hot dogs and soda, and every time she makes purchases she buys exactly three hot dogs and soda. She would never buy three hot dogs without a soda, and would never buy a soda without three hot..

  How much would the industry save by raising all of the debt

Elucidate how much would the industry save by raising all of the debt now, in a single issue, rather than in three separate issues.

  Where sd and dd are the domestic supply

Refer to the above diagram, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product. With a PcPt per unit tariff, the quantities sold by foreign and domestic producers respectively will be

  Draw his daily budget constraint

Suppose that Agostino's hourly wage is $30 per hour, his rental property yields $120 per day, and he has 16 hours in a day to allocate between leisure and work. Draw his daily budget constraint. How much can Agostino consume if he enjoys 16 hours of ..

  Howard bowen is a large-scale cotton grower

Howard Bowen is a large-scale cotton grower. The land as well as machinery he owns has a current market value of $4 million.

  Increasing advertising expense-oligopoly market structure

Manages regularly face the choice of increasing advertising expense or reducing price to increase sales in the Oligopoly market structure. The finance department predicts dropping the price by $2.00 will increase sales by 3,000 to 33,000 units next y..

  Illustrate what did classical economists assumes

Illustrate what did classical economists assume about flexibility of prices, wages and interest rates. Illustrate what did this assumption imply about self-correcting tendencies in an economy in recession. Illustrate what disagreements did Keynes ..

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