Question 1 Given the following on a closed economy. Question 2 C = 40 + 0.8Yd I = 55 – 200r G = 20 T = 20 Ye = 400 C= consumption I= Investment G = government spending T = Taxes Ye = National Income r = rate of interest Determine the following: a. The equilibrium level of consumption b. The level of investment c. The level of interest rate d. The level of Private savings e. The level of Public savings f. The level of national savings a. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country’s ability to catch up with rich ones. b. Economist believe there is a strong correlation between productivity and the standard of living? Discuss. [HINT: In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity and explain how each of them have an impact on the standard of living.]
Question 1
Given the following on a closed economy.
Question 2
C = 40 + 0.8Yd I = 55 – 200r
G = 20
T = 20
Ye = 400
C= consumption I= Investment
G = government spending T = Taxes
Ye =
Determine the following:
a. The equilibrium level of consumption
b. The level of investment
c. The level of interest rate
d. The level of Private savings
e. The level of
f. The level of national savings
a. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country’s ability to catch up with rich ones.
b. Economist believe there is a strong correlation between productivity and the standard of living? Discuss.
[HINT: In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity and explain how each of them have an impact on the standard of living.]
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