Quesiton consider the following economyplease follow, Ask an Expert

Economics

Quesiton: Consider the following economy:

Please follow directions and label answers e & f: 1,2, and 3

C = 1200 + .63 Y

I = 1750 - 1500 R

NX = 50 -.1 Y - 500 R

M = (.1625 Y - 1000 R) P

a. If G = 1,200 and M = 800, calculate the equilibrium values of output and interest rates, if P =1.

b. If the full-employment level of output is 8000, find the following:

1. Fiscal policy to restore full-employment.

2. Monetary police to restore full-employment.

3. What is the price level in the long run if we do nothing.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93129418

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