use Cramer's rule to compute Y* AND I*. The equilibrium values of Y and I evaluated at M₀=300, G₀=500, a=100, α=200, b=0.8, t=0.5, β=1, γ=0.4, and δ=1 are Y* =?, I*=?
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- What are the limitations of Samuelson general equilibrium modelGiven the pandemic greatly affecting the economy, how can the economy realign to fit the “new normal” using the elementary concepts of macroeconomics?One of the following scopes under the definition of macroeconomics is NOT TRUE A) Macroeconomic is a study about the behavior of the economy and analyses how the economy performs. B) Macroeconomic studies about how a consumer reacts to the fluctuation of price in his consumption. C) Macroeconomic analyses the indicator in line with the long-term economic objectives of the society or economy. D) Macroeconomic focuses on aggregate changes in the economy such as unemployment, the growth rate of the national output, inflation, and trade balance.
- Which one of the following is the best example of someone acting according to the assumptions of the traditional neoclassical model? -Dori studies hard for her test so she can eventually land a great job. -Alenia buys groceries for her sick neighbor out of kindness. -Marc buys a pack of cigarettes out of habit. -Chip buys an exercise machine based on a TV ad, even though research has shown that the machine is ineffective.which 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 ratioIn a neoclassical model, describe how each of the following developments or measures will impact unemployment:• a rise in income levels for consumers throughout the economy• cheaper imported products• a fall in government spending
- Which of the statements best describes an exogenous variable in an economic model? An exogenous variable is a variable whose value does not have a relationship with the other variables in the model. An exogenous variable is a variable whose value is not included in the model An exogenous variable whose value does not change as the state of the economy changes An exogenous variable is a variable whose value does change as the stae of the economy changesList two real-world instances in which rational function or equation is being employed. Also, state how rational function is being applied in each real-life event.Kindly help with the questions below 1) explain the difference between the study of microeconomics and the study of macroeconomics. 2) What is the Lucas critique as used in the economy
- Modern economic models sometimes require strong assumptions. What do you think are some of the trade-offs between a more rigorous, logically cohesive model with strong assumptions but clear inferences and a description of problems followed by a verbal discussion of possible implications?Classify the following topics as relating to microeconomics or macroeconomics. a family’s decision about how much income to save the effect of government regulations on auto emissions the impact of higher national saving on economic growth a firm’s decision about how many workers to hire the relationship between the inflation rate and changes in the quantity of moneyGiven that E = C +I , derive a function for Y in terms of t for each of the following macroeconomic models and then use it to predict Y when t is 10.
