I have to analyze, using the IS-LM model, the macroeconomic effects of an increase in savings in the short term and its implications for long-term growth. Specifically, I have to suppose that households (consumers) lose confidence and start saving more for any level of disposable income. Can you plase answer the following question (using graphs where possible): In terms of total savings and, therefore, of potential long-term growth, is a flat LM curve or a positive sloping LM curve better?

Q5 Homework • Unanswered Assume an economy can be modeled with these equations: C = 280 + 0.75 Yd, I = 200, G = 102 - 0.052 Y, X = 300 M = 365 and T = -40 + 0.22Y. What is the new value of Y when Investment rises by 5? 2 decimals please. Type your numeric answer and submit Unanswered Submit Q6 Homework • Unanswered Assume an economy can be modeled with these equations: C = 220 + b Yd, I = 200, G = 102 - 0.045 Y, X = 300 M = 325 and T= -40 + 0.29Y. What is the value of b when the multiplier on Investment is 1.925? 2 decimals please. Type your numeric answer and submit

In the graph of Figure I, the annual growth rate of the GDP of the United States economy is presented since the first quarter of 2004, while, in the graphs of Figure II, three different scenarios of the relationship are represented between demand and aggregate supply that reflect different situations of economic growth.1. Using the shifts in the aggregate demand curve in each of the three graphs in Figure II, explain the aggregate consumption and investment function. The graphs presented are from Figure 2, which is a representation of the aggregate supply and demand model.DA = aggregate demandGDP = Gross domestic productNGP = general price levelOAL = Long-term aggregate supplyOAC = Short-term aggregate supply

At an aggregate output level of $400 billion what is aggregate savings?

NEW QUESTION Consider the investment function of the IS model. Suppose that in the long-run 20% of GDP is spent on investment. Moreover, a one percentage-point increase of the real interest rate reduces the share of investment in GDP by one percentage point. Suppose that at some time t the real interest rate is equal to -1% while the rate of return of physical capital (think of it as the marginal product of capital) is 3%. What is the share of investment in GDP at time t?

Analyze, using the IS-LM model, the macroeconomic effects of an increase in savings in the short term and its implications for long-term growth. Specifically, suppose that households (consumers) lose confidence and start saving more for any level of disposable income. Please answer the following question (with graphs where possible): How does the loss of consumer confidence affect production, investment andprivate savings?

Suppose that the economy is summarized by the following: Technology (Production Function): Yt = 10 (Kt)0.3 (Lte)0.7 Consumption function: Ct = 0.8Yt Depreciation rate: 8% (i.e. δ= 0.08) Population growth: 2% (i.e. n = 0.02) Technological growth: 4% (i.e. g = 0.04)   QUESTIONS:  Find the steady state (long run) equilibrium values of kte, yet, and cet. Show graphically what would be the effect of a increase of the saving rate to s=0.4? Show graphically what would be the effect of an increase in population growth to 0.04? Assuming that in 2013 the US economy is in the steady state and L2013 = Le2013 = 8, what is the value of ke2014, ye2014, ce2014 , k2014, y2014, and c2014 ? Use your answer to e) to calculate the growth rate of ket, yet, cet , kt, yt, and ct Based on your answers to the previous questions and on your knowledge of how the Solow growth model works, explain what policies should a less-developed country pursue to raise its level of income in the long-run?…

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Assume a model economy with the following parameters: C=300+0.25 Yd I=250+0.5Y-2500i G=350 T=300 (M/P)d= 4Y-16,000i (M/P)s= 880   Derive the IS and LM relations and solve for equilibrium real output and equilibrium interest rate.

Please help me with this question wih explanantion.