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Estimate the level of k, autonomous expenditures.

Given any economy with the subsequent parameters:
C = Ca + 0.85 (Y - T) G = 0.1400
Ca = 1250 - 25r e = 20r
Ip = 1250 - 25r Ms = 750
T = 1500 + 0.15Y (M/P)d = 0.2Y - 250r
NX = 1250 - 0.10Y - 3e P = 1

1) (2%) Illustrate what is k?

2) (3%) Illustrate what is the level of planned autonomous expenditures (AP)?

3) (2%) Illustrate what is the equation for the IS curve?

4) (2%) Illustrate what is the equation for the LM curve?

5) (1%) Illustrate what is the equilibrium level of output?

6) (1%) Illustrate what is the equilibrium interest rate?

7) (5%) Illustrate what is the equation for the AD curve? (Hint: Check your work)

8) (4%) Illustrate what are the equilibrium levels of C and T?

9) (2%) Illustrate what is the equilibrium level of net exports?

10) (3%) Illustrate what are the equilibrium levels of I and S?

11) (2%) Verify which leakages = injections?

12) (2%) At equilibrium illustrate what is the government budget deficit? Velocity?

13) (6%) Illustrate what is the specific condition (equilibrium or amount or disequilibrium) in the goods and money markets at Y = 7500 and r = 5.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917377

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