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An economy has full-employment output of 1,000. Desired consumption and desired investment are: cd = 300 +0.90(Y-T)-500r d = 200 - 600r. Government purchases and taxes are given to be: G = 220 and T = 25 +0.20 Y Money demand is: M P = 0.40 Y - 250(r + x), where the expected rate of inflation, r= 0.20. The nominal supply of money M = 10,100. Using the goods market equilibrium condition, determine the equation for the /S curve that gives the market clearing output, Y given the real interest rate, r. (Enter your responses rounded to the nearest whole number.) Y = 2491 - 3929 r. Using the equilibrium condition for the asset market, determine the equation for the LM curve that gives the asset market clearing output, Y, given the price level and the real interest rate. (Enter your responses rounded to the nearest whole number.) Y = 125 + 25,250 /P) + 625 r. Calculate the general equilibrium values of the real interest rate, the price level, consumption, and investment. The real interest rate = % (Enter your response as a percentage rounded to the nearest whole number.)

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