Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Q1. Deduce the aggregate saving and aggregate investment recognize in an open economy.

Q2. Assume that in a closed economy devoid of the government sector, the consumption function is given by C = 100 + 0.8 Y and the investment function is I = 50.

a) Determine the equilibrium level of income?

b) Find out the level of saving in equilibrium?

c) If ‘I’ were to increase to 100, then what would be the result on equilibrium income?

Q3. In a hypothetical economy domestic consumption expenditure (C) is provided by 3000 units, government expenditure (G) as 500, domestic investment (I) is 900, exports (X) as 100 and imports (M) as 60.

a) Find out the level of domestic savings (S).

b) Determine the size of the government budget deficit?

Q4. Find out the size of the total leakage in the economy? How is it influenced if there is a tax, T = 100 introduced in economy?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M912907

Have any Question? 


Related Questions in Macroeconomics

Suppose the economy was at equilibrium before the start of

Suppose the economy was at equilibrium before the start of the recession. Show this using the IS-LM, Keynesian cross, AD-SRAS-LRAS and money market spaces.

The moroccan monetary authority is using a heavily managed

The Moroccan monetary authority is using a heavily managed float to keep the dirham at $0.12 per dirham. Under current foreign exchange market conditions, nonofficial supply and demand would clear at $0.15 per dirham. Us ...

Assume that the consumption schedule for a private open

Assume that the consumption schedule for a private open economy is such that consumption C = 20 + 0.80Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant ...

International political economywrite a 5 page essay 12

International Political Economy Write a 5 page essay (12 point type, Times New Roman, double spaced or the equivalent) on each of the following questions. 1. Provide an overview of the current global agreement surroundin ...

I philips curvesuppose that the philips curve is given by

I. Philips Curve Suppose that the Philips curve is given by π t  = π e t  + 0.1 -2u t What is the natural rate of unemployment?  Assume π e t = θπt-1 and suppose that θ is equal to 0. Suppose that the rate of unemploymen ...

Consider a capital asset having a purchase cost of 100 and

Consider a capital asset having a purchase cost of $100 and a useful life of 5 years.There is no salvage value for the asset at the end of its useful life. Using half year convention, calculate depreciation charges for t ...

Discussnbspyour findings is it better to make strict acls

Discuss  your findings. Is it better to make strict ACLs and let users ask for exceptions, or to use few ACLs and only add them as they are discovered to be needed? What are arguments for both approaches? How different i ...

Assume bubba is a risk-averse individual with a concave

Assume Bubba is a risk-averse individual with a concave utility function. He has an 60% chance of being healthy and earning an income of $250,000. He has a 40% chance of being sick and having his income fall to $10,000. ...

An accident has occurred causing 10000 in harm to the

An accident has occurred, causing $10,000 in harm to the victim.  The amount of harm done is undisputed and easy to prove; punitive damages are not applicable, so any damage award would be for exactly $10,000. This type ...

How does brand competition within stores affect prices

How does brand competition within stores affect prices? Explain.

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro