Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

An economy has full-employment output of 1000. Desired consumption and desired investment are

Cd = 200 + 0.8(Y-T) - 500r
Id = 200 - 500r

Government purchases are 196 and taxes are T = 20 + 0.25Y
Money demand is Md/P = 0.5Y - 250(r + πe)

Where the expected rate of inflation πe = 0.10. The nominal supply of money
M = 9890.

a. what are the general equilibrium values of the real interest rate, price level , consumption, and investment?

b. suppose that government purchases are increased to G = 216. What are the new general equilibrium values of the real interest rate, the price level, consumption, and investment?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M940638

Have any Question? 


Related Questions in Microeconomics

Advocating for data driven programthis discussion meets

Advocating for Data Driven Program This discussion meets CACREP standards: I2, I4, and J1. Scenario: You are a new school counselor in a school that has not been using data to drive the school counseling program. The vet ...

Diagnostic assessmentsat its core a diagnostic assessment

Diagnostic Assessments "At its core, a diagnostic assessment is a detailed investigation of children's strengths and skill gaps that permits targeted intervention." (Howard, V. F., & Aiken, E., 2015, p. 282). Informal di ...

Research topicthis assignment is the first step towards

Research Topic This assignment is the first step towards completing your research paper. For this submission, you will need to find a topic of interest related to race and ethnicity, social change, or both. You may come ...

Research proposal economicsa proposal of your research in

Research Proposal Economics A proposal of your research in the form of a 2-page double-spaced typed paper (not including the cover page; use font number 12). Indicate your research topic, describe your research interest ...

Answer all of the following questions in microsoft word

Answer all of the following questions in Microsoft Word file with complete questions and answers and attach it. 1. Do the richest people in world face scarcity of any kind of resource(s)? If they do, explain why? 2. Give ...

Assignment description1st forum assignmentbullwhat

Assignment Description 1st Forum Assignment: • What organizational leadership challenges do you see in your industry today? • What organizational leadership challenges do you foresee in your industry 10 years from now? • ...

Assignmentthere are many terms used to describe the

Assignment There are many terms used to describe the importance of people to an organization's success. Some of those terms are human resources, human capital, intellectual assets, and talent management. This implies tha ...

Assignmentthis final project paper will utilize many of the

Assignment This final project paper will utilize many of the sections of material you have studied during the duration of this course. You will make use of your own personal observations and occupational experiences to e ...

1 explain the difference between explicit and implicit

1) Explain the difference between explicit and implicit costs of production. 2) Explain the reasoning behind the U-shaped, long-run, average cost curve. 3) Explain the law of diminishing marginal returns. 4) Describe eco ...

Based upon your reading of the materials giving and your

Based upon your reading of the materials giving, and your own additional research, prepare an essay discussing the use of infectious disease as a weapon of international terror. You should address the following questions ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate