Suppose an economy has only two sectors: Goods and Services.Each year, Goods sells 80% of its outputs to Services and keepsthe rest, while Services sells 70% of its output to Goods and retainsthe rest. Find equilibrium prices for the annual outputs of the GoodsGoodsServices0.8and Services sectors that make each sector's income match its0.20.3expenditures.0.7Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps,respectively.If ps = $1000, then PG = S(Type an integer or a decimal.)If ps = $80, then PG= $(Type an integer or a decimal.)

A goods is a tangible thing that buyers want or own. A service is definitely not a substantial or…

, while Services sells 70% of its output to Goods and retains . Find equilibrium prices for the annual outputs of the Goods vices sectors that make each sector's income match its itures. 0.2 0.8 0.7 the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps, vely. S1000, then PG = $[ (Type an integer or a decimal.)

, while Services sells 70% of its output to Goods and retains . Find equilibrium prices for the annual outputs of the Goods vices sectors that make each sector's income match its itures. 0.2 0.8 0.7 the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps, vely. S1000, then PG = $[ (Type an integer or a decimal.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580 +0.8DI. The government is fairly active, with a total expenditure of $2000 million andnet taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion.(Question4 of 7)Now, consider that the government decreases taxes by 7.5%. While the change had a direct impact on the economy, other market conditions led to an unanticipated change in the economy. Specifically, imports decrease by 7.5%. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced a 0% change in its population.1. As a result of these events, what is the current equilibrium level of GDP?…
Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580+ 0.8DI. The government is fairly active, with a total expenditure of $2000 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potential GDP level is $13.5 billion. What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars) 1. What is the current equilibrium level of real GDP 2. what is the current real GDP per capita? 3. what is the value gap?
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