Problem 1: You are given the following model for the economy of a country: Consumption function: C=2000+0,75-YDI Investment function: I=10500 Government spending: G = 12000 Tax function: T= - Disposable income: YDI =Y -T+TR Transfer: 1000 T=200+0,4·Y a) What is the level of equilibrium output? b) What is the new equilibrium output if investment decreases by 2 000 units? c) How much does the government collect in taxes when the economy is in equilibrium?

Suppose that a new free trade agreement allows the economy to import cheaper goods from overseas, thereby decreasing the general price level. Adjust the following graph by either shifting the consumption function curve or the initial point on the consumption function curve (A) to illustrate the impact of a fall in the price level.

Suppose the households in a hypothetical economy has the following consumption function C = 1200+ 0.85Y, d Where Y is the disposable income. The government in this economy imposes a tax d rate of 0 < t < 1 to households' income (ex. A t = 0.10 means that 10% of households' income goes to tax payments).

QUESTION 8 As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y- 13250: The function that describes consumption is the same, cd(r) = 5000 – 1000r +0.25Y, but the investment curve shifted to the right: 1d(r) = 550 – 1800r + 0.2Y: This is because firms expect growth to continue in the future and want to invest more. Government spending is also the same: G- 180o0. The world interest rate is 5%. What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.

A marketer wants to run pre-roll video ads on YouTube before videos for local music artists. What are the options? A sponsored ads, sponsored cards, and sponsored keyword ads. B bumper ads, non-skippable video ads, and skippable video ads. C display ads, non-skippable video ads, and sponsored cards. masthead ads, pay-by-impression ads, and bumper ads.

The private consumption of Macroland is given by C=500+0.75Y and the private investment function is given by I=400−1000r, where r is the interest rate and Y is the GDP. The planned aggregate expenditure can therefore be written as PE=C+I=900+0.75Y−1000r. The equilibrium in the goods and services market happens when the planned expenditure is equal to the actual expenditure, or PE=Y Find the equilibrium GDP by solving the system of equations PE=900+0.75Y-1000r PE= Y for Y and PE. Note your solutions will depend on r! 1. Plot your solution for Y in a diagram measuring Y on the horizontal axis and r on the vertical axis. This curve is called the IS curve.

1a) and b)

U = c¹/² + Bc¹²/2 tt+1 A) Suppose that the household faces two within period budget constraints of the form: C++ 1 = Y++1 + (1+r)s Combine the two period budget constraints into one intertemporal budget constraint. B) Use the intertemporal budget constraint and this utility function to derive the Euler equation characterizing an optimal consumption plan. C) Use this Euler equation and the intertemporal budget constraint to derive a consumption function expressing cas a function of Y, Y₁+1, and rt.

An economy is described by the following equations: Y = C + I, + G C = a + b(Y – T) T = tY %3D %3D Let a = 20,6 = 0.75, t = 0.25, I, = 100, G = 240 %3D (a) Determine the value of the multiplier for this economy, and find the equilibrium value of Y. (b) Find the values of C, T and G-T, given your answer to part (a). (c) Describe what would happen if the government tried to eliminate its budget deficit by undertaking a cut in G equal to the current value of G-T. HTML Editor B IUA A ▼ 回 深 D ¶ T 12pt Paragrap II

Consider the following is the economy of Country Z: C = 200 + 0.85Y I= 100 Answer the following questions: Calculate the equilibrium level of output algebraically using the saving-investment (S-I) approach.