Calculate the multiplier and equilibrium gd

Assignment Help Econometrics

Reference no: EM131100215

HW on the Long-Run Macro Model

Diane K. Monaco

[Macro Model LR] Consider the following GDP equation data (Macro Model) for an economy:

Y= C + I + G + (EX - IM)
C= 1500 + (mpc) Y
I = 1250
G = 800
(EX - IM) = -250

1. Calculate the multiplier (M) and equilibrium GDP using the above LR Macro Model and an mpc = .80

2. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 500, G = 1000, I =2770, (EX - IM) = -250, and MPC = 0.72

3. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 550, G = 1600, I =1700, (EX - IM) = 300, and MPC = 0.69

4. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 700, G = 1400, I =1250, (EX - IM) = -250, and MPC = 0.78

5. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 680, G = 2600, I =1970, (EX - IM) = 300, and MPC = 0.82

6. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 1200, G = 1850, I =1390, (EX - IM) = 270, and MPC = 0.72

7. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 1360, G = 1300, I =2200, (EX - IM) = -150, and MPC = 0.69

8. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 1100, G = 2350, I =1250, (EX - IM) = -250, and MPC = 0.78

9. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 2000, G = 3400, I =1800, (EX - IM) = 280, and MPC = 0.82

10. Calculate the multiplier (M) and equilibrium GDP for the following:

Autonomous Consumption (dissaving) = 2240, G = 1900, I =1150, (EX - IM) = 350, and MPC = 0.84

HW on Marginal Utility

Diane Monaco

[1] Assume that the consumer will use their entire budget to purchase the two goods. Based on the data below what is the best (utility maximizing condition) outcome the consumer can achieve?

TABLE 1 Illustration of Consumer Equilibrium. Price of good 1 = $3, Price of good 2 = $1, Budget = $5

Units of good 1	MU of good 1	MU/price of good 1	Units of good 2	MU of good 2	MU/price of good 2
1	24	8	1	9	9
2	18	6	2	8	8
3	12	4	3	5	5
4	6	2	4	1	1

[2] Assume that the consumer has no budget limit to purchase the three goods. Based on the data below what is the best (utility maximizing condition) outcome the consumer can achieve?

Price and utility information for products A,B and C in Mils

Units of Product	Product A		Product B		Product C
Units of Product	Marginal Utility	Marginal Utility per $	Marginal Utility	Marginal Utility per $	Marginal Utility	Marginal Utility per $
1	2	3	4	5	6	7
1	20	20	36	12	40	8
2	15	15	24	8	35	7
3	11	11	15	5	30	6
4	8	8	9	3	25	5
5	6	6	6	2	20	4

[3] Assume that the consumer has no budget limit to purchase the two goods. Based on the data below, and if the Price of X is $1 and the Price of Y is $2, what is the best (utility maximizing condition) outcome the consumer can achieve?

Quantity	Total Utility of X	Total Utility of Y
1	24	85
2	42	130
3	56	160
4	66	185
5	74	200
6	80	210
7	84	215

HW on Production and Costs

Diane Monaco

[1] Complete the following cost table directly below:

Output	Total Cost	Fixed costs	Variable cost	Marginal cost	Average cost	Average fixed cost
0	30		0
1			10
2			18
3			22
4	56
5	64					6
6	76
7				15
8					15

[2) Complete the fo lowing cost table directly below:

Units of Output	TC	TFC	TVC	ATC	AFC	AVC	MC
0	20
1			1
2							3
3						4
4				12
5	75
6
7							86
8
9			360

[3) Complete the following profit table directly below:

Q	P	TC	TR	MR	MC	PROF
0	$5	$9
1	$5	$10
2	$5	$12
3	$5	$15
4	$5	$19
5	$5	$24
6	$5	$30
7	$5	$45

[4) Complete the following profit table directly below using a Price (P) = 50:

OUTPUT	PRICE	REVENUE	COST	PROFIT
1			200
2			210
3			220
4			231
5			243
6			256
7			270
8			285
9			301
10			320
11			345
12			375

Reference no: EM131100215

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