Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 17, Problem 5E
(a)
To determine
The graph of the investment rate in physical capital.
(b)
To determine
The process of creating the graph of investment rate in physical capital.
(c)
To determine
Comment on the time series for investment in the physical capital.
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The figure below graphs log GDP for periods t = 1, t = 2, t = 3, t = 4, and t = 5.
log GDP
log 115.
log 110.
log 108
log 105
log 100
2 3 4 5
time
(a) Calculate the rate of growth of GDP between periods 2 and 3.
(b) Calculate the slope of the red line in the figure.
(c) What is the geometric average rate of growth of GDP between time 1 and time
5?
Below are the information of four sector economy. All values are in RM billon. The saving function [Fungsi tabungan] : S = -200 + 0.15 Yd Investment, [Pelaburan] : I = 500 Government spending [Perbelanjaan kerajaan] : G = 300 Tax [Cukai] : T =100 Export (X) : X=200 Import (M) : M=100 Based on the data above, calculate the:
a. Find value of MPC.
b. Derive the consumption function for the above economy
c. Calculate the equilibrium level of national income using the AD-AS approach.
Chapter 17 Solutions
Macroeconomics (Fourth Edition)
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