In 2020, a simple economy relied on three sectors: manufacturing, professional services, and agriculture:   A total output of $165 of agriculture are produced. Of those, $100 are external demand, $20 go back to agriculture, $30 is sold to manufacturing, and $15 is sold to professional services.    A total output of $90 of manufacturing services are produced. Of those, $35 are external demand, $15 go back to manufacturing, $10 are sold to agriculture, and $30 are sold to professional services.   A total output of $60 of professional services are produced. Of those, $35 are external demand, none go back to professional services, $15 is sold to agriculture, and $10 to manufacturing services.   Suppose in 2020, external demand changes: agriculture doubles in demand and manufacturing demand is reduced by 50%. What is the total production of each sector?

2020 Q2 GDP (in 2020 Q3 Nigerian currency) 790,000 million 2020 Q2 GDP (in 2018 Nigerian currency) 835,000 million     2020 Q3 Consumption (in 2020 Q3 Nigerian currency) 369,000 million 2020 Q3 Central (Federal) Government Spending (in 2020 Q3 Nigerian currency) 111,000 million 2020 Q3 Local Government Spending (in 2020 Q3 Nigerian currency) 114,000 million 2020 Q3 Investment (in 2020 Q3 Nigerian currency) 223,000 million 2020 Q3 Exports (in 2020 Q3 Nigerian currency) 255,000 million 2020 Q3 Imports (in 2020 Q3 Nigerian currency) 277,000 million     2020 Q3 Consumption (in 2018 Nigerian currency) 357,000 million 2020 Q3 Central (Federal) Government Spending (in 2018 Nigerian currency) 106,000 million 2020 Q3 Local Government Spending (in 2018 Nigerian currency) 108,000 million 2020 Q3 Investment (in 2018 Nigerian currency) 211,000 million 2020 Q3 Exports (in 2018 Nigerian currency) 328,000 million 2020 Q3 Imports (in 2018 Nigerian currency) 260,000 million     2020 Q2 Population 5.37…

The data below are from the economies of Ishgandar and Nonburmia. Ishgandar         Nonburmia       Year Population GDP Deflator Nominal GDP Year Population GDP Deflator Nominal GDP 1 5 100 $200 1 10 100 $300 2 5 125 $375 2 10 110 $440 (e) Assume that in Year 1 Nonburmia is operating inside its production possibilities curve and that Nonburmia’s production possibilities curve remains unchanged from Year 1 to Year 2. As a result of the change in real GDP from Year 1 to Year 2, does Nonburmia’s economy move closer to or farther away from its production possibilities curve? Explain using numbers for real GDP and state what will happen to cyclical unemployment in the short run.

Using a graph and words, explain the effect of SRAS and LRAS curves when the President of the United States would give businesses who invested in new plant and equipment an investment tax credit equal to 10 percent of their investment and the marginal tax rate has been reduced to people who make over $50,000 and are permanent. Will you work more or less when marginal tax rates are cut and will businesses invest more in plant and equipment when an investment tax credit has been implemented by the President of the United States? Also explain in your graph what will happen to equilibrium price level and equilibrium real GDP and the unemployment rate when the marginal tax rates are cut and are permanent for people making over $50,000 and the investment tax credit has been implemented by the President of the United States.