An economy is described by the followingequations:Supply:Y=F(K,L)=6K^0.6L^0.4K=405, L=110Demand:C=231+0.8(Y-T)|=1161.0-129rG=150,T=120NX=125-490er=r*= 5A. What Is the level of GDP in this economy?B. How much are household savings?C. How much Is the government saving?D. How much is National Saving?E. How much is investment spending?F. Net capital outflow is:G. Equilibrium exchange rate is :Suppose G drops to 142, Find:H. National SavingI. InvestmentJ. New trade balanceK. New Equilibrium exchange rate

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A. What Is the level of GDP in this economy? B. How much are household savings? C. How much Is the government saving?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

An economy is described by the following
equations:
Supply:
Y=F(K,L)=6K^0.6L^0.4
K=405, L=110
Demand:
C=231+0.8(Y-T)
|=1161.0-129r
G=150,T=120
NX=125-490e
r=r*= 5
A. What Is the level of GDP in this economy?
B. How much are household savings?
C. How much Is the government saving?
D. How much is National Saving?
E. How much is investment spending?
F. Net capital outflow is:
G. Equilibrium exchange rate is :
Suppose G drops to 142, Find:
H. National Saving
I. Investment
J. New trade balance
K. New Equilibrium exchange rate

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