For the following scenarios, use the supply and demand graph to predict the resulting changes in the real interest rate, national saw and investment. Instructions: Click and drag the appropriate line or lines in the graph to answer the question New environmental regulations increase firms' costs of operating capital. Increased Cost of Operating Capital
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- I have worked on 1-3, but am stuck on 4-6, could you please assist? Suppose that the economy is summarized by the following: Technology (Production Function): Yt = 10 (Kt)0.3 (Lte)0.7 Consumption function: Ct = 0.8Yt Depreciation rate: 8% (i.e. δ= 0.08) Population growth: 2% (i.e. n = 0.02) Technological growth: 4% (i.e. g = 0.04) QUESTIONS: Find the steady state (long run) equilibrium values of kte, yet, and cet. Show graphically what would be the effect of a increase of the saving rate to s=0.4? Show graphically what would be the effect of an increase in population growth to 0.04? Assuming that in 2013 the US economy is in the steady state and L2013 = Le2013 = 8, what is the value of ke2014, ye2014, ce2014 , k2014, y2014, and c2014 ? Use your answer to e) to calculate the growth rate of ket, yet, cet , kt, yt, and ct Based on your answers to the previous questions and on your knowledge of how the Solow growth model works, explain what policies should a less-developed country…Equation for finding the steady state of equilibrium for investmentQuestion 20 Revisit Later Q. "The National Statistical Office, which is under the Union Ministry of Statistics & Programme Implementation, has released its estimates for gross domestic product (GDP) in the first quarter (Q1) of this fiscal year, 2022-23. The headline is that GDP at constant prices in the first quarter showed 13.5 per cent growth year on year. This is a deceptively high level, given the base effect." The following options are given to explain why this number is deceptively high. i. Most expectations were for quarterly GDP growth in the 15-16 per cent range year on year. ii. Given the base effect, the growth rate of 13.5 percent is in fact a clear disappointment. iii. It needs to be remembered that the equivalent quarter of the previous year, April-June 2021, was when the devastating second wave of the coronavirus epidemic was raging through the country. iv. Even though there was no national lockdown as draconian as that observed during the first wave in 2020, activity…
- Graph the market for loanable funds such that current national saving is at a level of $500 million and the real interest rate is at 2.5%Economics 1) Draw a saving-investment diagram to show how each of the following changes shifts the IS curve. (a) Future income rises. (b) The future marginal productivity of capital increases. (c) Government purchases decrease temporarily. (d) The effective corporate tax rate increases.In the event of strong economic growth in China which relationship/s will be affected? Short Run Aggregate Supply Investment Demand Long Run Aggregate Supply Aggregate Demand Regarding the question above, describe short run result of the change? Price level increases and real gross domestic product increases. Price level decreases and real gross domestic product decreases. Price level decreases and real gross domestic product increases. Price level increases and real gross domestic product decreases.
- Suppose GDP in this country is $900 million. Enter the amount for consumption. Value National Income Account (Millions of dollars) Government Purchases (G) 250 Taxes minus Transfer Payments (T) 325 Consumption (C) Investment (I) 275 Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S) 2$ million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private Saving million Public Saving 2$ million Based on your calculations, the government is running a budgetSaving and investment in the national income accounts The following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $950 million. Enter the amount for investment. National Income Account Value (Millions of dollars) Government Purchases (G�) 250 Taxes minus Transfer Payments (T�) 325 Consumption (C�) 500 Investment (I�) Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S)National Saving (�) = Y-C-G or G-T or Y-C or Y-T-G = C or Y or I or G $ __________ Million Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private Saving = Y-C-T or T-G or C-T or Y-T-I = $ __________…A simple economy produces only lumber, granola bars, and computers. Annual production of these goods for 3 years are shown below along with their prices. If 2020 is the base year, the value of 2021 production in constant dollars is $ _ Don't include $ or any commas or spaces in your answer. Copyrighted material - not to be shared. 2019 2020 2021 Production of lumber (units) Price of lumber ($ per unit) Production of granola bars (units) Price of granola bars ($ per unit) Production of computers (units) Price of computers ($ per unit) 100 120 130 100 120 125 500 600 650 2 2.50 3 50 40 50 300 320 350
- During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. Question: Higher personal taxes in the U.S. will affect personal disposable income which in turn will affect the domestic demand for goods and services. Costs of production and inputs however continue declining. What do you expect the U.S. output and prices in the near future. Assume we are moving from the old equilibrium to a new equilibrium. Please state clearly your assumptions and include a graph to support your answer.INTEREST RATE (Percent) Demand LOANABLE FUNDS (Billions of dollars) Supply Demand Supply ? Scenario 1: Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 18%. Now suppose there is an increase in the tax rate on interest income, from 18% to 22%.Between Foreign Direct Investment (net inflows %) and Real GDP Growth ( %): A. Identify the independent and dependent variable and explain Between Foreign Direct investment (net inflows %) and Real GDP per capita (constant %) a. Identify the independent and dependent variable and explain