Question

In: Economics

Given C= 102 + 0.75Yd, I=150 – 100i, Ms =300, LT=0.25Y, and LA = 124-200i...

Given C= 102 + 0.75Y^d,
I=150 – 100i, M^s =300, L_T=0.25Y, and L_A = 124-200i

2.1 Find commodity market equilibrium i.e. IS curve

2.2. Find money market equilibrium i.e. LM curve

2.3. Find equilibrium income

2.4. Find equilibrium interest rate

Suppose money supply increases by $17,

2.5. Find the amount of new equilibrium income

2.6. Find the amount of new interest rate

Suppose autonomous investment drops down by $97

2.7. What is the amount of new equilibrium income?

2.8. Find the new interest rate

This information was given at the top if you need it.

Given the following information

C = Co + b(Y-T)

I =Io + Iy - IrR

G =Go

T =To

M^d = Lo – LrR + LyY

M^s = Mo

Where C₀ = Autonomous consumption

b= MPC,

I_y= income sensitivity of investment (Income elasticity of investment)

I_r= interest elasticity of investmen

L_r= interest elasticity of money demand

L_y= income elasticity of money demad

I= investment, G= Government spending, T = Taxes

R= interest rate

Y= GDP

Expert Solution

please give ratings it will be appreciable, thank you

the solution of the above question is,

Rahul Sunny answered 7 months ago

Consider the economy with C 800, I 300, X 150, and M 250. Also, the primary...

Consider the economy with C 800, I 300, X 150, and M 250. Also, the primary income balance (net factor income) is 80, and the secondary income balance (net transfers) 120. GNDI is 1,200. find absorption, saving, and the current account balance:

DD is a 60 year old female, who weighs 102 lbs, is given a 300 mg...

DD is a 60 year old female, who weighs 102 lbs, is given a 300 mg loading dose of an anticancer medication. At the same time, a continuous IV infusion is started at a rate of 13 mg/hr. The volume of distribution is 1 L/kg and the drug half-life is 12.1 hours. The physician wants drug levels drawn 28 hours after the loading dose was given and the infusion was started. What is the expected plasma drug concentration when the...

C=200 + 0.25(Y-T) I=150 + 0.25Y- 1000r G= 250 T=200 (M/P)d=2Y-8000r M/P=1600 1-Suppose that the government...

C=200 + 0.25(Y-T) I=150 + 0.25Y- 1000r G= 250 T=200 (M/P)d=2Y-8000r M/P=1600 1-Suppose that the government increases G to 400. What are the new level of r and Y? * 2-The equilibrium levels of Y and r are * 3-The equation of IS curve is 4-At equilibrium the values of consumption (c) and investment (I) are * 5-The equation of LM curve is

Consider the following IS-LM model: C=400+0.25YD I=300+0.25Y-1500r G=600 T=400 (M/P)D=2Y-1200r (M/P)=3000 (a) Solve for the equilibrium...

Consider the following IS-LM model: C=400+0.25YD I=300+0.25Y-1500r G=600 T=400 (M/P)D=2Y-1200r (M/P)=3000 (a) Solve for the equilibrium values of C, and I, and verify the value you obtained for Y adding C, I and G. (b) Now suppose that the money supply increases to M/P=4320. Solve for Y, r, C and I and describe in words the effects of an expansionary monetary policy. (c) Set M/P equal to its initial value of 1600. Now suppose that government spending increases to 840....

IS Data: AD = C+I+G C = $210 + 0.9YD G = $300 I = $400...

IS Data: AD = C+I+G C = $210 + 0.9YD G = $300 I = $400 – 48i YD = Y–TA+TR TR = $100 TA = 0.33Y [Note, round the AD slope to one decimal] LM Data: L = Md/P = 5Y – 150i Ms/P = $8,750 If Government uses fiscal policy to increase spending from $300 to $420; find the new equilibrium values for i and Y

Assume: C = 150 + 0.9DI I = 50 DI = C + I in equilibrium for a 2-sector model

6. The Simple Keynesian Model (i.e., the income-expenditure model)Assume: C = 150 + 0.9DI I = 50 DI = C + I in equilibrium for a 2-sector model (Note: DI = C in a 1-sector model)a. Define the term, consumption.b. What is the value of “autonomous” consumption (also called “a” or the vertical intercept)?c. What is the value of the slope (also referred to as “b”) of the consumption function? d. There’s another name for the slope of the consumption function. What is it?

I. Suppose the inverse demand function for a monopolist’s product is given by ? = 150...

I. Suppose the inverse demand function for a monopolist’s product is given by ? = 150 − 2? and the total cost function is given by ?? = 100 + 30? 1. Determine the profit-maximizing price and quantity 2. Determine the maximum profits II. Suppose the inverse demand function for a monopolistically competitive firm’s product is given by ? = 100 − 2? and the cost function is given by ?? = 52 + 4? 1. Determine the profit-maximizing price...

Company X's total outstanding shares are 1000 shares, with 400 shareholders A, 300 B, 150 C,...

Company X's total outstanding shares are 1000 shares, with 400 shareholders A, 300 B, 150 C, 100 D and 50 E, respectively. C held a shareholders' meeting to appoint directors, and the agenda was presented as candidates for directors by F,G,H and B, professional managers recommended by A. 1. Is it possible for B to exercise its voting rights on the agenda of the shareholders'meeting for the appointment of this director? At the shareholders' meeting, B,F,G and H were all...

Given the following information G = 300 T = 200 C = 220...

Given the following information G = 300 T = 200 C = 220 + .6 (Y-T) I = 100 – 4r Md = .75Y – 6r Ms = 735 a. Derive the IS and LM curves. Calculate the equilibrium values of Y and r. b. Suppose that G is reduced until the budget deficit is eliminated. Calculate the new equilibrium values of Y and r. Explain the intuition of what happened, providing an IS/LM...

Suppose that C = 800, I = 300, G = 200, and X = -100.

Suppose that C = 800, I = 300, G = 200, and X = -100. a. Calculate GDP. b. Calculate each of the four components of GDP. c. Suppose G increases to 300 and GDP increases to 1,500. What is the new government component?