What is the equilibrium real interest rate

Assignment Help Microeconomics

Reference no: EM13726961

1. Suppose that the following equations describe an economy. ( C, I, G, T and Y are measured in billions of dollars, and r is measured as a percent; for example, r = 10 = 10%):C = 170 + 0.6 ( Y - T)

T = 200

I = 100 - 4r

G = 350

(M/P)d = L = 0.75Y - 6r

Ms/P = 735

a. What is the equilibrium levels of real output

b. What is the equilibrium real interest rate

Reference no: EM13726961

Questions Cloud

Analyze and explain the supply chain of the new division : Analyze and explain the supply chain of the new division of the existing business. Share your plans to develop and leverage core competencies and resources within the supply chain in an effort to make a positive impact on the business model and th..

Describe organization communication : Organization Communication: You will locate one peer-reviewed journal article related to a topic covered in Module 1 and create a professionally designed PowerPoint presentation

Object-oriented programming with vcl form : I need someone to help in my project which is windows application program. It supposed to be in program Object-Oriented Programming in C++ with VCL form.

What the electrical sources for china and japan : Tell me what the electrical sources for China Japan North Korea South Korea in Taiwan. In this order exactly, name of fuel used to produce electrical.

What is the equilibrium real interest rate : What is the equilibrium levels of real output and what is the equilibrium real interest rate

Write strategic objectives summary : Develop at least three strategic objectives for each of the four balanced scorecard areas identified (Financial, Customer, Process, Learning and Growth). Your objectives should be selected, in part, based on an evaluation of a number of potential ..

What are two most important issues facing american society : What are the two most important issues facing American society today? Explain why these are crucial or important. How should we address or resolve these issues?

How much will the firm want to produce : How much will the firm want to produce and what employment force will the firms want to hire?

Revamp the newsletter tutorial : Using the finished tutorial as a template, consider how the pages hold style continuity within a particular grid system (as explained in class) and improve upon it. Use the tutorial newsletter as a template but use your own images and headlines to..

User Account

All Pages