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- Hi I want the answer as soon as possible Given the following informations Consumption(C)= 800+0.9Y Investment( I)=8000-800r Money Supply(Ms)=28500 Demand for Money(Md)=0.75Y-1500r Find an equation for LM scheduleThe US economy slowed significantly in early 2008, and policy makers were extremely concerned about growth. To boost the economy, Congress passed several relief packages (the Economics Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009) that combined would deliver about $700 billion in government spending. Assume, for the sake of argument, that this spending was in the form of payments made directly to consumers. The objective was to boost the economy by increasing the disposable income of American consumers. a. Calculate the initial change in aggregate consumer spending as a consequence of this policy measure if the marginal propensity to consume (MPC) in the US is 0.5. Then calculate the resulting change in real GDP arising from $700 billion in payments. b. Illustrate the effect on real GDP with the use of a graph depicting the income-expenditure equilibrium. Label the vertical axis "Planned Aggregate Spending, AE planned" and the horizontal axis "Real GDP."…Suppose that Dell Corporation has 20,000 computersin its warehouses on December 31, 2019, ready tobe shipped to merchants (each computer is valued at$500). By December 31, 2020, Dell Corporation has25,000 computers ready to be shipped, each valuedat $450.a. Calculate Dell’s inventory on December 31, 2019.b. Calculate Dell’s inventory investment in 2020.c. What happens to inventory spending during theearly stages of an economic recession?
- If in the Euro Area the government expands its expenditures, then what happens toequilibrium interest and national income under the following conditions:a)Interest elasticity of investment is lowb)Interest elasticity of investment is highc)Interest elasticity of investment is zeroSketch the required graphics and explain the graphicsConsider the following economy: Labor supply: Nt= 90 Capital stock: Kt = 90 Government spending: Gt = 20 Tax collections: Tt = 20 Production function: Yt = 2(Kt)0.5 (Nt)0.5 Real money demand Lt = 2Yt - 200rt Consumption function: Ct = 16 + 0.8(Yd)t Domestic price level: Pt = 4 Investment function: It = 25 - 50rt Nominal money supply: Mt = 1296 Plot (a)-(d) on the IS-LM and AD-SRAS-LRAS diagrams. Make sure to label (i) the axes, (ii) the curves and (iii) the initial equilibrium levels.Assume the following: Spot USDBRL = 5.0500 1YR USD Money Market Rates = 1.50% 1YR BRL Money Market Rates = 9.00% What is the 6MO USDBRL forward rate? (Recall that Money Market Rates are quoted as annualized rates)
- The propensity to consume tells us by how much consumption changes for a given change in disposable income. To analyze this fact, follow these steps: 5- Go to the Federal Reserve Economic Data (FRED) https://fred.stlouisfed.org/. download the series A067RX1A020NBEA and PCECCA since 1999. Make sure all series are in real terms and in comparable units. Compile a single spreadsheet with these series. 6- In the spreadsheet, first compute the annual growth rate of disposable income and consumption for all years in the sample. Then compute the average for the period 2000-2017 for both variables. Finally, construct a demeaned measure of the annual growth rate of disposable income and consumption for all years in the sample. That is, let C t denote consumption in year t. Then, the growth rate of consumption between year t and t−1 is [(C t /C t−1 )−1], denoted by gC t. Now, let gC denote the average annual growth rate in consumption since 2000 . This number will stay fixed and not changing…Consumption, ? = 0.8?? + 80,Tax, ? = 0.3? + 10Investment, ? = −30r + 800Money supply, ?s = 8000 andMoney demands: ?1 = 0.2?, ?2 = −20? + 4000i. Determine the values of national income, ?, and interest rate, ?, on the assumption thatboth the commodity and the money markets are in equilibrium.ii. Identify the autonomous components and induced components among the aboveequations. Explain the reasons why the components have been identified as autonomousor induced.Define the terms recessionary gap and the inflationary gap. Why do they occur? Please frame your answer within the context of the COVID-19 impact in the economy.
- A decrease in the nominal interest rate by 2% and a simultaneous decrease in expectedinflation by 2% will causea. an increase in the real interest rate.b. a reduction in the real interest rate.c. a reduction in investment.d. an increase in investment.e. a decrease in money demand.f. an increase in money demand.g. an increase in the real interest rate and a reduction in investment. Explain..assume that the economy is operating in a recessionary. explain all the steps which the bank of canada should take in order to fix this problem. 2 graph is needed along with the explanation.There is an inflationary gap of $500 m in the full SR model, IS-LM; and I=450 + 0.25Y-1500i; C=350+.65 YD. Calculate the required to policy and show what will happen, cet. par., in the appropriate graph.
