4. The foreign sector is added to the Keynesian national income model and there is a positive marginal propensity to import. X is the export and Z (in capital letter) is the import and C (in capital letter) is the consumption. Y = C +1+G + (X - Z) C = c+ bY Z = z + mY Find: (i) The equilibrium level of income, consumption and import (ii) Specify the ranges of b and m and give the economics interpretations (iii) Identify the endogenous and exogenous variables from the model

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1a) and b)

Hi I need the second half to this problem thank you

Suppose country A has the following system of taxes/transfers: ANAL (a) Income 200: Taxed at 40%. In this country, we assume that everyone receives 5 per hour as wages. A worker chooses how many hours she wants to work. Her preferences over aggregate consumption, c, and 41 abor, I, are represented by the following utility function U(c, 1) =c+0ln(31-1) where 0 is a parameter reflecting drudgery of work (i.e. how painful the work is). Assuming 0 = 60 for the worker and given the system of axes/transfers, what is her optimal choice of labor? A 1=21 B 1 20 C 1* = 19 D 1*=22 48 55

Question 2 Refer to the information provided in Figure 23.9 below to answer the question(s) that follow. Aggregate expenditures ($ millions) 225 200 175 150 45° AE 100 200 300 Aggregate output ($ millions) Figure 23.9 a) Refer to Figure 23.9. Write the equation for the aggregate expenditure function (AE). Show your work. b) Refer to Figure 23.9. What is the equilibrium level of output in this economy? State the equilibrium condition used to determine this. c) Explain the forces that maintain/drive the economy to this equilibrium by considering what will happen at the following two levels of output, $300 million and $100 million. You will need to discuss changes in investment through unplanned inventories and the response of output. d) Refer to Figure 23.9. How will equilibrium aggregate expenditure and equilibrium aggregate output change as a result of a decrease in investment by $20 million? e)The interest rate is an exogenous factor that effects the level of investment in an economy.…

(1)The following macroeconomic model describes the economy of Sunderland. 1. Y= C +I + G + NX 2. C = 220 + 0.63 Y 3. 1 = 1000- 2000R 4. G = Go 5. NX = 525-0.10Y-50OR 6. M (0.1583Y-1000R)P (a)ls it a fair characterization to refer to equation #2 as a "simple" consumption function? Explain. (b)Derive the expression for equilibrium real output, Y, for this economy. Note: In your final expression for Y, restrict coefficient values to three decimal points. (c) Suppose government spending is 1200 , money supply by the Central Bank is 900 and the price level is 1, find the value of GDP (Y) and equilibrium interest rate (R) for Sunderland. Income Identity Consumption function Investment function Government Expenditure Net export function Money market equilibrium (2)The questions in this section are related to the macroeconomic model of Sunderland. (a)The expression you are asked to derive in question #1b can be considered an aggregate demand curve. Do you agree? Explain your answer. (b)Sketch…

these bottom two are solved I am just struggling with how to graph the consumption function and the breakeven condition for this problem and to Point out the income and consumption values relevant for these problems:    3. The marginal propensity to consume (MPC) is 0.75, which means that households spend 75% of each additional dollar of income. The starvation-level consumption is 6, which means that households will consume at least 6 dollars, regardless of their income.   Therefore, the amount that households will save can be found by subtracting their minimum consumption level from their gross income, multiplying the difference by the MPC, and subtracting the lump-sum tax:   Savings = (1 - MPC) * (Gross Income - Starvation-level Consumption) - Lump-sum Tax  Savings = (1 - 0.75) * (40 - 6) - 10  Savings = 0.25 * 34 - 10  Savings = 1.5   Therefore, households will save $1.5.   3. a) How should the lump-sum income tax change to allow households to save 3?   To allow households to save…