Consider a frugal closed economy without money market. Assume there is no government or exports/imports. The economy is described by the following set of equations. C=1000+0.5⋅Y ID = 600 What is the equilibrium output Y* a)4000 b)2000 c)3200 d) 1600
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Consider a frugal closed economy without
C=1000+0.5⋅Y
ID = 600
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- Congratulations! You are hired to work as economic advisor to His Excellency the Prime Minister of Xanadu, an imaginary country that suffers from a severe recession condition due to the Novel Coronavirus Pneumonia (COVID-19) pandemic. What are your recommendations for an urgent plan to rescue the economy of Xanadu? Specifically, what government policy actions are required? Explain to His Excellency the possible drawbacks of your recommended course of actions.Describe (in symbols) the datum and variables of the economy. Express the definition of the Walrasian equilibrium for this economy using vector notation.Global warming has a negative impact on the entire world, but policymakers hesitate to make changes due to the possible effect on the economy. How could new energy policies impact the economy? All global warming policies will be equally funded by all countries. New energy policies can be very costly, and these costs would be passed onto people and businesses. New energy policies would secure all jobs in the energy market. New energy policies are inexpensive and can be implemented easily.
- an economy is in equilibrium when which of the following conditions is satisfied: (a) total savings equals zero (b) output equals zero (c) consumption equals saving (d) total savings equals investment (e) all of the abovewhich of the followings is NOT an assumption of the harrod -domar model? a-closed economy b-capital is the only factor of production c-variable marginal and average propensity to save d-fixed capital-output ratioWe have an economy with two major sectors: Sector I produces the means of production, and Sector II produces the means of consumption. The constant capital advanced in Sectors I and II are $20 billion and $30 billion, respectively. Assume that the variable capital advanced in Sectors I and II are $20 billion and $10 billion, respectively. Also assume that the rate of surplus value is 100% in each sector. Is the economy balanced or will a macroeconomic crisis occur due to the un-coordination between the two sectors? Explain with reference to the numerical values in this example.
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