Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

The given relations describe the imaginary economy of the starter land:

Y = C + I + G + X ………………………………..(i)
C = 220 + 0.63Y…………………………………(ii)
I = 1000- 2000R …………………………………(iii)
G = Go……………………………………………….(iv)
X = 525- 0.1Y- 500R……………………………(v)
M = (0.1583Y – 1000R)P……………………..(vi)

Q1. In brief describe why net export is inversely related to the interest rate in equation (v).

Q2. Derive the expression for the aggregate demand curve and describe why this is an aggregate demand equation.

Q3. Find out the general equilibrium real output (y) and interest rate (R) in this economy given that the government purchases are 1200, money supply is 900 and the price level is 1.

Q4. Find out the level of aggregate consumption, investment and total export in this economy.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910218

Have any Question? 


Related Questions in Macroeconomics

Part a what is classical dichotomy what is the neutrality

Part A) What is 'Classical Dichotomy'? What is the neutrality of money? Are the two related? If so,how are they related? What are the major economic and political conclusions of 'Classical Dichotomy'? 5) Part B) Do Class ...

Part anbsptracy dave and tony run the only restaurant in

Part A:  Tracy, Dave and Tony run the only restaurant in town which has been doing well due to the mining boom. Tracy wants to sell as much food as possible without losing money. Dave wants the restaurant to bring in as ...

The simple interest for buying a passenger transit rail is

The simple interest for buying a passenger transit rail is shown as the product of the principle amount (P), time (in years), and annual rate (R). The City of Phoenix plans to buy five additional mass transit cars for $1 ...

A lower east-side cinema charges 300 per ticket for under

A Lower east-side cinema charges $3.00 per ticket for under 12 years of age and $5.00 per ticket for anyone 12 years of age or older. The firm has estimated that the price elasticity of demand for tickets by those 12 yea ...

Assignmentfor this submission you will need to find a topic

Assignment For this submission, you will need to find a topic of interest related to race and ethnicity, social change, or both. You may come up with a topic of your own, or choose from the list below: - white privilege, ...

Suppose the economy is in long-run equilibrium with real

Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases the money supply by 6%. Illustrate the short run effe ...

Assignmentconsider your last vehicle purchase and the

Assignment Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was the right decision. While analyzing your decision, keep in min ...

Using assignments 1 2 and 3 create a 6-8 slide powerpoint

Using Assignments 1, 2 and 3, create a 6-8 slide PowerPoint presentation in which you: Provide a historical perspective of the policy(why it is important) from Assignment 1. Identify the key official and unofficial actor ...

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 ...

Assignment 3 long-term investment decisionsfirst 2

Assignment 3: Long-Term Investment Decisions First 2 assignments attached Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budg ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen