Let aggregate national income be given by Yt = Ct + It + Gt Where C, I and G are consumption, investment and government expenditure. Assume that consumption is given by Investment is given by Ct = myt It = 1 + α(Yt-1 - Yt-2) And government expenditure declines over time according to Gt = Go (1 - 8)t, 0<8 <1 Where is the exogenous rate of decline of government expenditure Derive the linear second order difference equation. Solve the difference equation. (i) (ii)

In this problem you will work with the IS-MP model to calculate a macroeconomic equilibrium using algebra. The steps are: 1) find the IS equation 2) find the MP equation 3) combine them by substituting the r value from the MP equation into the IS equation Assume C = 1 + 0.75Y - 0.5T - 25r, I = 19 - 75r, G = 12, T = 14, the average FFR = 0.05, expected inflation is 3%, the risk premium is 4%, and potential output is 80. What is the output gap in the macroeconomic equilibrium?

A certain country's GDP (total monetary value of all finished goods and services produced in that country) can be approximated by g(t) = 2,000-420e 0.07t billion dollars per year (0 ≤t≤ 5), where t is time in years since January 2010. Find an expression for the total GDP G(t) of sold goods in this country from January 2010 to time t. HINT: [Use the shortcuts.] G(t) = Estimate, to the nearest billion dollars, the country's total GDP from January 2010 through June 2014. (The actual value was 7,321 billion dollars.) Xbillion dollars

Suppose an economy is characterized by the following behavioural equations: C= 160+0.8*YD; I= 150; G= 150; T= 100; Solve for a)Equilibrium GDP (Y) b)Disposable income (YD) c)Consumption (C)

5. Using the accelerator model in which the level of inventories in current period depends on the expected sales following this equation: Nt= a ESt Where N stands for the current level of inventories, ESt stands for the level of expected sales and alpha is a parameter equal to 0.6. The growth or increase in inventories is given by AN, = B(N₁-N₁-1), where Beta parameter is equal to 0.3 a) Suppose that the initial level of inventories is zero and the forecasting for sales for this period is equal to 200. Can you quantify the level of inventory investment? What would it be total production in period 1? b) Now suppose that in the second period there growth of inventories is 12%. What is the value of inventory investment for period 2 and forecasting sales for period 2?

Suppose that the world's current oil reserves is R = 2060 billion barrels. If, on average, the total reserves is decreasing by 15 billion barrels of oil each year, answer the following: A.) Give a linear equation for the total remaining oil reserves, R, in terms of t, the number of years since now. (Be sure to use the correct variable and Preview before you submit.) R= B.) 8 years from now, the total oil reserves will be billions of barrels. C.) If no other oil is deposited into the reserves, the world's oil reserves will be completely depleted (all used up) approximately years from now. (Round your answer to two decimal places.)

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Q. Table provided gives data on gross domestic product (GDP) for the United States for the years 1959–2005. a. Plot the GDP data in current and constant (i.e., 2000) dollars against time. b. Letting Y denote GDP and X time (measured chronologically starting with 1 for 1959, 2 for 1960, through 47 for 2005), see if the following model fits the GDP data: Yt = β1 + β2 Xt + ut Estimate this model for both current and constant-dollar GDP. c. How would you interpret β2? d. If there is a difference between β2 estimated for current-dollar GDP and that estimated for constant-dollar GDP, what explains the difference? e. From your results what can you say about the nature of inflation in the United States over the sample period? Please answer c, d, and e. Thank you!

The world's population living in extreme poverty has declined linearly between the years 2005 and 2011. In 2005, the percentage of the world's population living in extreme poverty was 20.70% and in 2011, the percentage of the world's population living in extreme poverty was 13.70%. Determine a linear equation that models the world's population in extreme poverty, in percentage, as a function of years since 2005. What is the slope of this function, and what does it tell you in practical terms? Round your answer to the nearest hundredth (0.01). Om = -7.00. The world's population in extreme poverty decreased by 7 percent per year between the years 2005 and 2011. Om = 7.00. The world's population in extreme poverty increased by 7 percent per year between the years 2005 and 2011. Om = 1.17. The world's population in extreme poverty increased by 1.17 percent per year between the years 2005 and 2011. Om = -1.17. The world's population in extreme poverty decreased by 1.17 percent per year…