Problem 1 Suppose the system of aggregate expenditures can be described by the following relationships and parameter values. C(Y — Т) 3D 1200+ 0.8(Y — T) I(r) = 100 – 3r G = 200;T = 200; r = 5; Ex = Im = 0 1. Find the equilibrium value of Y (output/income) in this model. Let this level of production be the economy's potential GDP (Yr).

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.

What is the equilibrium level of

Sub : EconomicsPls answer very fast.I ll upvote correct answer. Thank You

3. Suppose that you are interested in answering the question of how consumption reacts to tax increases. In recent years, government has imposed tax increases to fund increased infrastructure spending. If you could design an ideal experiment to answer this question, how would you do so? Do you think it would be practical to use this experiment on a large scale?

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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

2. Question 2: Suppose that you estimate a model of the aggregate annual retail sales of new cars that specifies that sales of new cars are a function of real disposable income, the average retail price of a car adjusted by the consumer price index, and the number of sports utility vehicles sold (you decide to add this independent variable to take account of the fact that some potential new car buyers purchase sports utility vehicles instead). You use the data (annual from 2000 to 2014) and obtain the following estimated regression equation: CARS, = 1.32 + 4.91Y D; + 0.0012 PRICE, - 7.14 SUV (2.39) (0.00045) (71.40) 1 where CARS = new car sales (in hundreds of thousands of units) in year t, YD; = real disposable income (in hundreds of billions of dollars), PRICE = the average real price of a new car in yeart (in dollars), SUV = the number of sports utility vehicles sold in year t (in millions). You expect the variable YD to have a positive coefficient and the variables PRICE and SUV to…

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?…