User Account

All Pages

Calculate the equilibrium level of income or real gdp

Assignment Help Macroeconomics
Reference no: EM13301690

In the aggregate demand model in equilibrium, GDP (Y) = C + I + X (open economy).

Where C = consumption schedule = 100 + .75Y (consumption is a function of income).

Where I = planned investment = 20 and X = net exports = 40. Both are independent of GDP (Y).

Use the information provided above to complete the following:

Calculate the equilibrium level of income or real GDP for this economy.

What happens to equilibrium Y if Ig changes to 15? What does this outcome reveal about the size of the multiplier?

Reference no: EM13301690

Questions Cloud

Joshua is a true entrepreneur with businesses around the : Joshua is a true entrepreneur with businesses around the world. He makes world-renowned cakes and coordinating products. Now he has begun making clothing with a cake theme/inspiration. In addition, he has written a book
Most peaches are grown in georgia : Most peaches are grown in Georgia. Today you heard that the relationship between the peach farmers and the pickers is going sour, and there will soon be no peaches available.
Find the adjuste balance due at maturity for a 90 day note : Find the adjuste balance due at maturity for a 90 day note of $12,000 at 13.9% ordinary interest if a partial payment of $6000 is made on the 60th day of the loan
What are the pros and cons of pbl : What ideas and plans do you have about approaching each of the 3 main phases and related tasks? What are the pros and cons of PBL?
Calculate the equilibrium level of income or real gdp : Calculate the equilibrium level of income or real GDP for this economy. What happens to equilibrium Y if Ig changes to 15? What does this outcome reveal about the size of the multiplier?
What are the differences in the available products : If you made $40,000 in 1980 and in 2010, what would your income status or wealth be in each time period?
Organization and coherence of your writing : Find a relevant article from newspapers, magazines, etc. that is  related to at least one of the Macroeconomic topics we have covered this semester. Summarize the article and  comment on how the article is related to what (topics) you have learned in..
Draw the game in extensive form and predict the outcome : Firm A currently monopolizes its market and earns profits of $10M.Firm B is a potential entrant that is thinking about entering the market.If B does not enter the market,
Do the consumers or producers pay more : Suppose that the market for corn is characterized by many small farmers/firms who have no impact on the final price of corn. The market demand for corn has been estimated to be

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd