(Answered) Suppose an economy is characterized by the following

Economics

Suppose an economy is characterized by the following equations:

C= 720 + 0.6Yd I = 500

G =500

T = 400

Is this economy closed or open? Explain
Write the expression and solve for the following:
The equilibrium level of expenditure (YDemand)
The total disposable income (Yd)of the household
Total consumption expenditure
Private savings, government savings and the national savings of the economy V. Is private saving the same as aggregate investment? Why or Why not?
Assuming total output is equal to 5000, what is the total demand of this economy? Is it equal to total production? If not explain how interest rates and the firm would adjust to bring the economy to an equilibrium.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M92478477
Price:- $35

Verified Expert

Priced at $70 Now at $35, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

Carefully explain how the negative price elasticity of

Carefully explain how the negative price elasticity of demand affect the revenue or profit of an organization?

A car rental agency currently has 50 cars available 14 of

A car rental agency currently has 50 cars available, 14 of which has a GPS navigation system. One of the 50 cars were selected at random. To find the probability that a car selected randomly has a GPS navigation system a ...

A survey of 455 citizens found 304 of them favor a new bill

A survey of 455 citizens found 304 of them favor a new bill introduced to the city. We want to find a 95% confidence interval for the true proportion of the population who will favor the bill. What is the lower limit of ...

Describe five changes in the vaiables that will cause

Describe five changes in the vaiables that will cause demand for a product to increase, shifting the demand curve to the right?

A worker earns 15 per hour at a plant and is told that only

A worker earns $15 per hour at a plant and is told that only 2.5% of all workers make a higher wage. If the wage is assumed to be normally distributed and the standard deviation of wage rates is $5 per hour, the average ...

Question parents decided to set aside money for their

Question: Parents decided to set aside money for their child's higher education. The objective is to provide $35,000 in today's dollars after 17 years. Their financial analyst forecasted that the average annual inflation ...

Recent tariff actions by president trump include raising

Recent tariff actions by President Trump include raising tariffs and quotas on imports of both manufactured goods like televisions and automobiles and intermediate goods like steel and aluminum sheets. How will the econo ...

In australia the overall five-year survival rate for breast

In Australia, the overall five-year survival rate for breast cancer in females is 90%. A random sample of 420 breast cancer patients in a rural region was randomly selected and followed up after 5 years. The results show ...

A survey of internet users reported A survey of Internet users reported

A survey of Internet users reported that 20% downloaded music onto their computers. The filing of lawsuits by the recording industry may be a reason why this percent has decreased from the estimate of 27% from a survey t ...

Given that the heights of adult males show a mean of 69 and

Given that the heights of adult males show a mean of 69" and standard deviation 2.7." A sample of 37 adult males shows a mean of 68.2" and standard deviation of 2.9." 1. Which of the following is a statistic? a) 69" b) 2 ...

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