Consider the following closed economy, which we shall call Gazzalestan. C=20+³/5 X YD. I=2400 G=1400 TR=40 T=¹/6XY If there is a $250 increase in autonomous investment, what is the change in equilibrium real GDP (assuming no change in the price level)? Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter
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- Consider the following open economy, which we shall call Gazzalestan. C=50+4/5xYD. I=2000 G=1100 X=150 M=3/10 X Y TR=30 T=3/8 X Y If there is a $80 increase in autonomous investment, what is the change in equilibrium real GDP (assuming no change in the price level)? Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. Do not forgot to enter the negative sign, if appropriate. For inquiring minds: B is the currency symbol for Bitcoin, which is the official currency of Gazzalestan.Assume the following model of a closed economy: Y = C + I + G C = 120 + .5(Y – T) I = 100 – 10r G = 75 T = 50 (M/P)d = Y – 30r Ms = 700 P = 2 Derive the equation for the IS curve, showing Y as a function of r alone. Derive the equation for the LM curve, showing Y as a function of r alone. Graph both the IS and the LM curves. What are the equilibrium level of income and equilibrium interest rate? (Y = 584, r = 7.8)Consider the following open economy: C = 40 + 0.85x YD I = 1500 G = 1600 X = 240 M = 0.12x Y TR = 10 T= 0.16V If there is a $180 increase in government expenditure, what is the change in equilibrium real GDP (assuming no change in the price level)? Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer at two (2) decimals if necessary.
- At an aggregate output level of $400 billion what is aggregate savings?Consider a closed economy that is characterized by the following equations: Y = C +1+ G (1) C = 500 + 0.75(Y-T) (2) | = 375-25r (3) T = 500 (4) G = 500 (5) m = m, (6) m. = 1000 (7) m, = 0.5Y (8) m, = -50r (9) Where Y is the GDP, C is private consumption expenditure, I is the Investment expenditure, G is government expenditure, T is tax revenues, M̟ is money supply, M, is transaction demand for money. M, is the speculative demand for money and r is the interest rate (in % points). a) Derive (m/P) the demand for real money balances equation (where P is the aggregate price level.) b) Derive the IS and LM equations of the economy (Express Y as a function of r and assume Pis fixed at 1.0.) c) Calculate the short-run equilibrium values of Y and r in the economy.Assume an economy where spending for each sector is: Household: C = 800 + 0.95Q Business: I = 3000 Public: G = 4000, Tr = 7000, Tx = 1000 + 0.3Q Foreign: X = 1700, Im = 200 + 0.165Q Solve for Consumption Expenditure, Household Savings, Imports https://www.bartleby.com/questions-and-answers/assume-an-economy-where-spending-for-each-sector-is-household-c-800-0.95q-business-i-3000-public-g-4/849c5d9a-4bb7-48c4-8b89-ccc576cdc909
- An open economy is described by the following system of macroeconomic equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$:Y = C + I + G + X –MC = 160 + 0.6 YdT = 100 + 0.25YX = 80I = 150G = 150M = 22 + 0.25YWhere: Yis domestic incomeYdis private disposable income C is aggregate consumption spending T is government tax revenue I is investment spending X represents exports M represents imports of goods and services. (a) Determine trade balance at equilibrium. (b) Find the multiplier applicable to autonomous tax and interpret it. (c)Use the multiplier applicable to exports, to explain how a 100 billion decline in demand for exports could have affected the economy’s: (i)GDP/ output (ii)Balance of trade (iii)Government budgetAn open economy is described by the following system of macroeconomic equations, in which all macroeconomic aggregate are measured in billions of Namibian dollars, N$:Y = C + I + G + X –MC = 160 + 0.6 YdT = 100 + 0.25YX = 80I = 150G = 150M = 22 + 0.25YWhere: Yis domestic incomeYdis private disposable income C is aggregate consumption spending T is government tax revenue I is investment spending X represents exports M represents imports of goods and services. 1.1 (a)Determine the equilibrium level of income/ output. (b) Illustrate the aggregate spending curve and equilibrium level of income on a diagram. (c) Determine the surplus/ deficit in the government budget at equilibrium.(d) Determine trade balance at equilibrium. (e) Find the multiplier applicable to autonomous tax and interpret it.1.2 (a)Use the multiplier applicable to exports, to explain how a 100 billion decline in demand for exports could have affected the economy’s:(i)GDP/ output (ii)Balance of trade (iii)Government budgetConsider a hypothetical country in which, initially, real GDP equals potential GDP. Suppose that the autonomous consumption decreases to half its initial value. (Assume that the initial value of autonomous consumption is a positive number.) All else equal (with regard to the AD-IA model), relative to the baseline level, in the long run, the net exports are: A. higher. B. lower. C. the same.
- Determine savings in an open economy at equilibrium when C equals $ 31, I equals $ 9, G equals $ 9 and NX equals $ 7. Enter your answer as a whole number. Do not enter units, "$", commas, or decimals. Remember to begin your answer with "-" if the answer is negative?stion 21 of 22 > Identify whether each macroeconomic variable is an example of a withdrawal or an injection. Then, determine the value of investment at equilibrium. All values are in billions of dollars. Withdrawal saving = $720 imports = $2520 taxes = $2700 investment at equilibrium: $ 400 Answer Bank Injection government spending = $3600 exports = $1980 Attempt 1 investment = ? billionAssuming the economy is operating below its potential output, what is the impact of an increase in net exports on real GDP ? Why is it difficult, if not impossible, for a country to boost its net exports by increasing its tariffs during a global recession?