Assume an economy were characterized by the following equationsC = C + bYDI=Ī - diG=GT=TX=XIM= Z +fYMD= a + Bi+yYMS=ⒸP = 1(1)(2)(3)(4)(5)(6)(7)(8)(9)where the notation denoting parameters C,b,1,d,e,G,T,X,Z,f,a, ß,y, are all positive andYD denotes disposable income. We assume that 0

IS curves denote the market equilibrium for goods and services, whereas the LM curve denotes the…

Assume an economy were characterized by the following equations C = C + bYD I= Ï - di G=G T= T X=X IM= Z + fY MD= a + Bi + yY MS= P = 1 (1) (2) (3) (4) (7) (8) (9) where the notation denoting parameters YD denotes disposable income. We assume that 0

Assume an economy were characterized by the following equations C = C + bYD I= Ï - di G=G T= T X=X IM= Z + fY MD= a + Bi + yY MS= P = 1 (1) (2) (3) (4) (7) (8) (9) where the notation denoting parameters YD denotes disposable income. We assume that 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question: Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution. My Note: This is my first time resubmitting, I was told to confirm that MXC(Q) =10 is the correct form of the Marginal cost of extraction to answer this question correctly. I'm not sure but this is the way my professor asked his question.
For a income determination model Y = C +I + G, C = Co + bY d, I = Io + aYd, Yd = Y – T, T = To +tY, G = Go, 0 < a, b, t < 1, find the equilibrium level of income. Find the multipliers for each input.
Assume a closed economy where the level of investment is 300 and savings function is s = -30+ 0.15y calculatr the equilibrium level of income
India is the second populous country in the world that has indicate growth improvement over time. Suppose consumption function for India is C = 250 + 0.6(Y – T) and taxes are autonomous which equal to $20. (a)Find India’s consumption function (C). (b)Suppose India’s investment (I) is equal to $300 and government spending (G) is equal to $150 at every level of disposable income. Calculate national income equilibrium for a 3-sectors economy. (c) In the same year, India seems to be very active in export and import activities. This sector has contributed $100 for net export (NX). Calculate national income equilibrium for the 4-sectors economy of India.
I want to check if I am going in the right direction with my math could I get feedback or guidance for the next part
Assume that the production function for a country is given by Y=√K and annual investment is given by the function I=γ×YI where γ=0.280, and that the yearly depreciation rate is 4.67%. Suppose that this year, the output in the country is 1, and a neighbor country's output is 50% higher. Calculate the time it would take for the country's output to catch up with its neighbor's output. Assume the neighbor country's economy is neither growing nor shrinking.
Suppose that private savings and investment functions are given by: S = −c0 + (1 − c1)(Y − T) I = b0 + b1Y with G = T = 0. Assume 0 < b1 < 1−c1 < 1 (i.e. that slope of the savings curve is steeper than that of the investment curve). (a) Model Basics: Draw a graph of the investment=savings model with S,I on the vertical axis, and Y on the horizontal axis. Clearly label the 1) specific values of each intercept, 2) specific values of the slopes of each curve. (b) Suppose consumers choose to save more by reducing consumption at any given level of income, so that c0 declines. Show this on the graph. What are the effects of this change on 1) output, 2) the level of private savings, 3) the level of investment. (c) Briefly describe the economic intuition behind your results. Why is this called the paradox of thrift? (1-2 sentences is fine). (d) Deriving the Model: Show that the equilibrium condition Y = C + I + G implies I = S + T − G
51) In the absence of technological progress, we know with certainty that an decrease in the saving rate will cause which of the following? A) decrease steady state consumption B) increase steady state consumption C) have no effect on steady state consumption D) decrease steady state consumption only if the decrease in saving exceeds the increase in depreciation E) decrease steady state consumption only if the decrease in saving is less than the decrease in depreciation 52) As an economy adjusts to an decrease in the saving rate, we would expect output per worker A) to decrease at a constant rate and continue decreasing at that rate in the steady state. B) to decrease at a permanently higher rate. C) to increase at a permanently higher rate. D) to return to its original level. E) none of the above 53) Suppose the following situation exists for an economy: Kt+1/N t/N. Given this information, we know that A) saving per worker equals depreciation per worker…
Several Authors have used econometric analysis to show that the energy intensity of an economy resembles an inverted U-shape across increasing levels of per capital income. Identify and explain two determinants of this relationship between energy intensity and per capital income.
The formula for economic impact is I(r)=(A)/1-r The formula for impact change is ∆I= I'(r)*∆r The formula for percentage change is g(r)=(r)/1-r
Assume the following equations summarize the structure of an economy. C = Ca +0.7(Y-T) Ca = 2,000 - 5r T = 150+ 0.15Y (M/P)d = 0.3Y - 10r MS/P = 3,000 i = 2,000 -10r G = 4,000- .2y NX = 1,500 - 0.1Y- 5r- A. Calculate the equilibrium real output (Y) and (r). B. If government spending increases by 100, compute by how much the fed must increase the money supply if it wants to avoid the crowding out of expansionary fiscal policy.