just all three subparts please. i,ii and iii. spreadsheet attached too tC(t) = a +byd (t)Yd (t) = Y(t)-Tx(t)Tx(t) = Txo+tx.Y(t)|NX(t) = X + mY(t)|E(t) = C(t)+I+G+ NX(t)AY(t+1) = 2(E(t) - Y(t)) 2>0012Y(t)20001888Tx(t)k(t)Y(t+1)= a(a-bTx +I+G+X− M₁) +[1 − 2(1−b(1 – tx) + m)]Y(t)NX(t) E(t)E(t)-Y(t) k(t)Yd(t) C(t)16803201370410-101860-140 2.33333297.6 1590.4 1302.8 387.612.4 1815.2 -72.8 1.213331829.76 285.952 1543.808 1267.856 375.952 24.048 1791.904 -37.856 0.630931799.475 279.895 1519.58 1249.685 369.895 30.10496 1779.79 -19.6851 0.3280824 1783.727 276.7454 1506.982 1240.236 366.7454 33.25458 1773.491 -10.2363 0.1706015 1775.538 275.1076 1500.43 1235.323 365.1076 34.89238 1770.215 -5.32286 0.08871136 1771.28 274.256 1497.024 1232.768 364.256 35.74404 1768.512 -2.76789 0.0461281769.066 273.8131 1495.252 1231.439 363.8131 36.1869 1767.6267-1.4393 0.023985-0.74844 0.0124718 1767.914 273.5828 1494.331 1230.748 363.5828 36.41719 1767.1662.521.510.50a =b=Tx0 =tx=m =|=G=X =MO=lambda =10M(t)tOpen economy dynamic multiplier1100.75-809 1767.315 273.4631 1493.852 1230.389 363.4631 36.53694 1766.926 -0.38919 0.00648310 1767.004 273.4008 1493.603 1230.202 363.4008 36.59921 1766.802 -0.20238 0.0033711 1766.842 273.3684 1493.474 1230.105 363.3684 36.63159 1766.737 -0.10524 0.00175112 1766.758 273.3516 1493.406 1230.055 363.3516 36.64843 1766.703 -0.05472 0.00090913 1766.714 273.3428 1493.371 1230.028 363.3428 36.65718 1766.686 -0.02846 0.00047114 1766.691 273.3383 1493.353 1230.015 363.3383 36.66173 1766.677 -0.0148 0.00024315 1766.679 273.3359 1493.344 1230.008 363.3359 36.6641 1766.672 -0.00769 0.00012516 1766.673 273.3347 1493.339 1230.004 363.3347 36.66533 1766.669 -0.004 6.34E-0517 1766.67 273.334 1493.336 1230.002 363.334 36.66597 1766.668 -0.00208 3.13E-0518 1766.668 273.3337 1493.335 1230.001 363.3337 36.66631 1766.667 -0.00108 1.47E-0519 1766.668 273.3335 1493.334 1230.001 363.3335 36.66648 1766.667 -0.00056 6.04E-0620 1766.667 273.3334 1493.334 1230 363.3334 36.66657 1766.667 -0.00029 1.54E-060.20.2300200400100.815Y* = 1766.6671.666667k= Consider the following economy:C(t) = a + bYa(t)Ya(t)= Y(t) - Tx(t)Tx(t)= Txotx. Y(t)M(t) = Mo + mY (t)NX (t) = XM(t)E (t) = C(t) +I+G+ NX(t)AY(t + 1) = A[E(t) - Y(t)]The first equation is a consumption function, the second equation computes disposableincome, the third is the tax function, the fourth is the import function, the fifth equationcomputes net exports, and the sixth is the national accounting identity showing thecomponents of aggregate demand. The final equation describes the adjustment to output ifthere is excess demand. The speed of this adjustment is governed by the parameter 2(lambda).(i)(iii)(iv)Verify that the steady state (AY(t) = 0) equilibrium is given byabTxo +I+G+X - Mo1-b(1-tx) + mY" =Let a = 110, b=0.75, Txo= -80, tx = 0.2, I = 300, G=200, X = 400, Mo = 10, m = 0.2, andλ=0.8.Verify Y* 1766.667Verify the steady-state autonomous expenditure multiplier is 1.6667.Use the model set up in the spreadsheetand set Y(0)= 1766.667, theequilibrium value. Let investment rise by 100. Derive and plot the open economydynamic multiplier.

(i) Verify that the steady state equilibrium is given bygiven the values: a=110,b=0.75, =−80,…

(i) Verify that the steady state (AY(t) = 0) equilibrium is given by abTxo +I+G + X - Mo 1-b(1-tx) + m (ii) (iii) Y* Let a = 110, b=0.75, Txo= -80, tx = 0.2, I = 300, G=200, X = 400, Mo = 10, m = 0.2, and λ=0.8. Verify Y* 1766.667 Verify the steady-state autonomous expenditure multiplier is 1.6667.

(i) Verify that the steady state (AY(t) = 0) equilibrium is given by abTxo +I+G + X - Mo 1-b(1-tx) + m (ii) (iii) Y* Let a = 110, b=0.75, Txo= -80, tx = 0.2, I = 300, G=200, X = 400, Mo = 10, m = 0.2, and λ=0.8. Verify Y* 1766.667 Verify the steady-state autonomous expenditure multiplier is 1.6667.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter25: Production And Growth

Section: Chapter Questions

Problem 1CQQ

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