Briefly elucidate why net export is inversely related to, Ask an Expert

Economics

Derivation of aggregate demand equation.

The following relations describe the imaginary economy of starter land:

Y=C + I + G + X .....(1)
C= 220 + 0.63Y......(2)
I=1000- 2000R ......(3)
G= Go............ (4)
X= 525- 0.1Y- 500R............(5)
M=(0.1583Y - 1000R)P...........(6)

(a) Briefly elucidate why net export is inversely related to interest rate in equation#5.

(b) Derive the expression for aggregate demand curve also elucidate why it is an aggregate demand equation.

(c) Find the general equilibrium real output(y) also interest rate(R) in this economy given which government purchases are 1200, money supply is 900 also price level is one.

(d) Determine the level of aggregate consumption, investment also net export in this economy. (Limit Computed values to 9 decimals points.)

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M916630

Have any Question?

Related Questions in Business Economics

Suppose the amount of sun block lotion in plastic bottles

Suppose the amount of sun block lotion in plastic bottles leaving a filling machine has a normal distribution. The bottles are labeled 300 milliliters (ml) but the actual mean is 302 ml and the standard deviation is 2 ml ...

Determine the sample size needed to construct a 90

Determine the sample size needed to construct a 90?% confidence interval to estimate the average GPA for the student population at a college with a margin of error equal to 0.5. Assume the standard deviation of the GPA f ...

Practical exercise 1assume the demand for teachers ld in a

Practical Exercise 1: Assume the demand for teachers (Ld) in a school is given by the following equation: W = 1700 - 2L D and the supply of teachers (L S ) depends on whether the school is a public school or private sch ...

What effect does the teacher have on creating a learning

What effect does the teacher have on creating a learning environment with little to no behavior problems?

Fifty-three percent of employees make judgements about

Fifty-three percent of employees make judgements about their co-workers based on the cleanliness of their desk. You randomly select 8 employees and ask them if they judge co-workers based on this criterion. The random va ...

What steps do i take to calculate if a person bought 1

What steps do I take to calculate, If a person bought 1 share of Google stock within the last year, what is the probability that the stock on that day closed at more than $950? Please explain the steps and you can use di ...

What is comparative statics analysis and how does it

What is comparative statics analysis and How does it compare with sensitivity analysis ? What is analysis used in finance, accounting, and statistics?

Consider the tableage group 18-29 30-39 40-49 50-59 60-69

Consider the table Age group 18-29 30-39 40-49 50-59 60-69 70 and over Frequency 9831, 7845, 6869, 6323, 5410, 5279 What is the probability that the next person chosen will be in the 40-49 or 50-59 age groups?

Suppose that tucker industries has annual sales of 580

Suppose that Tucker Industries has annual sales of $5.80 million, cost of goods sold of $2.86 million, average inventories of $1,165,000, and average accounts receivable of $580,000. Assuming that all of Tucker's sales a ...

In the us 82 of police officers have graduated from a

In the U.S., 82% of police officers have graduated from a police academy. If 300 police officers are chosen at random, what is the probability that at least 75% have graduated from a police academy? Keep intermediate ste ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert