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Due to its remoteness, Siberia can be considered as a closedeconomy. Recent data about its popula- tion movements indicate thatthe region suffered from a severe loss in its working agepopulation from 1995 to 2005. As a consequence full employmentoutput declined from Y1995 = 100 to Y 2005 =90. This question asks you to analyze the long-run implications ofdifferent fiscal policies available to Siberian officials. Theeconomy can be described as follows:
C(r) = 10 + 0.6Y -1000r (14)
I(r) = 50 -1000r (15)
G =20 (16)
(a) What were the equilibrium levels of the real interest rate,consumption and investment in 1995?
(b) In 2005 government officials consider changing governmentexpenditures in order to keep in- vestment at the same level as itwas in 1995. What must the value of G be to implement thispolicy?
(c) The second policy under consideration is to alter governmentexpenditures in order to maintain private consumption at its 1995level. What must the value of G be in this case?
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Find the man-optimal stable matching and Önd the woman-optimal stable matching. Are these matchings identical. 2. Consider a two-sided matching model with two men and two women. Their preferences are expressed by the table: P (m1) = w1 w2 P (w1) = m2
Each year in the United States nearly 5 billion pounds of discarded carpet end up in land fills. In response to this situation, the carpet manufacturer has decided to start a take-back program whereby obsolete carpet is reclaimed at the end of its..
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