Please solve all the question.thanks. 2. Let the national-income model be:Y = C+ 1o + GC= a- b(Y – To)G = gY(0) Identify the endogenous variables.(b) Give the econamic meaning of the parameter g.(c) Find the equilibrium national income.(a> 0, 0< b < 1)(0< g < 1)(d) What restriction on the parameters is needed for a solution to exist?

Given equations:- Y = C + I0 + G C = a + b(Y - T) G = gY

Answered: 2. Let the national-income model be: Y…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 10E

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2. Suppose an economy is given by the following equations: C = 150 +0.25Yd I= 150 +0.25Y - 1000i G = 250 T = 200 (M/P) = 1400 Y L(i)=2Y - 8000i Yn (Natural level of output) = 1200 Using the above information, answer the following. (a) (5) Derive the IS and LM equations. (b) (5) Find equilibrium Y and equilibrium i. Is the economy in a recession or a boom?
Which one of the following statements is FALSE?(a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andMultiple‐choice questions: Select one correct answer for each of the following. In your answer booklet, write down only the number of the question and next to it, the letter of the correct answer.spending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.
The economy of Godzillaland is represented by the following:C=50+0.25Y d , T=1000, G=1000, I=100. (d) If the government increases taxes and spending by 50 what is the new equilibrium level of output? (e) Calculate the equilibrium level of output in case where taxes depend on income according to the following: T=-25+0.125Y.
Which one of the following statements is FALSE? (a) There are four broad groups of decision‐making units in the economy:households, firms, government and the foreign sector;(b) Savings are an important injection into the circular flow of income andspending in the economy;(c) Taxes are a leakage or withdrawal from the flow of income and spending in the economy;(d) Spending by households on consumer goods and services is calledconsumption spending.
Let the national-income model be: Y = C + I0 + G C= a+b +b(Y - T) (a > 0, 0 < b < 1) G = gY (0 < g < 1) Consider the national-income model found above. Provide a general equilibrium solution for each endogenous variable (Y, C, G) as a formula of the parameters given. Create a numerical example by selecting and justifying a set of parameters that are close to real estimates for the US economy of $19 trillion GDP.
(1.4) Consider the following IS-LM model: I Y=C+I+G C=100+0.4(Y-T) I= 150 +0.2Y - 4,000r r = 0.01 with G = 200 and T = 100. (a) Derive the IS curve and draw it in an appropriate diagram. (b) Calculate the equilibrium values of Y, C, I and r. (c) What is the impact of decreasing government spending to G' = 180 in terms of the new equilibrium value Y"? (d) Suppose the central bank decides it wants to counteract the restrictive fiscal policy. What exactly (i.e. we look for graphical and numerical answers) can the central bank do in order to keep equilibrium output at the value obtained for Y in (b)?
(c) Consider the following macroeconomic model Y = C + 1 + Go C = 40 + 0.8Y I = 0.1Y How many degrees of freedom does the system have? Given that Go is exogenous government expenditure, find the equilibrium solutions for Y, C and I. b(i) hand written plz (ii)
1. Given the following model: Y = C + to + Go C = a + b(Y – T) T = d+ tY (a) How many endogenous variables are there? (b) Find Y", T*, and C*. (a > 0, 0 0, 0
(a) Consider a closed economy whose desired savings (Sd) and desired investment (Id) are given by the following expressions: CC₂ rd where r denotes the real interest rate. Find the equilibrium in the Goods market for this economy, and represent it in a graph. From now on, suppose there are two large Countries in the world, say Canada (Ca) and the United States (US). Ca (b) To start with, assume that both Countries are closed economies. Their desired consumption (Cd) and desired investment (I) are given by: Cus Its Sd Id = = = = 100+ 600r 170 - 400r 10+ cca (Yca Tca) - 100r 15 - 100r 40+ cus (Yus - Tus) - 200r = 230 - 200r Moreover, output (Y), taxes (T), public expenditure (G), and the marginal propensity to consume (c) are as follows:
Question: Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution. My Note: This is my first time resubmitting, I was told to confirm that MXC(Q) =10 is the correct form of the Marginal cost of extraction to answer this question correctly. I'm not sure but this is the way my professor asked his question.
2. Suppose we have the following data to study if a country's per capita income (measured in thousands of dollars) is a function of its R&D spending (measured as a percentage of GDP). ( country 1 2 3 4 xi yi 1 4 2 6 3 7 4 10 (1) Calculate beta hats with OLS. (2) Calculate R2 and adjusted R².
35) A decrease in TFP caused by severe storms, fires, or the pandemic would lead to a(n) ________ in the golden-rule level of per capita savings and a(n) ____ in the golden-rule level of per capita consumption. (choose one) increase; increase increase; decrease decrease; increase decrease; decrease

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