1. The macroeconomy of a certain country is described by the following set of equations: Consumption: C = 0.8(Y − T) + 30 Investment: I = −2r + 40 Government expenditure: G = 30 Tax: T = 0.25Y + 20 The equilibrium condition of the monetary market is: 60/P= 0.8Y − 8r + 36 When P =1/3, how much is the equilibrium national income? A. 100 B. 200 C. 300 D. 400 E. None of the above 1-2. Please show the equation of the total demand. (In the form of “Y =…”) A. Y =25/P+ 125 B. Y =50/P+ 125 C. Y =25/P+ 250 D. Y =50/P+ 250 E. None of the above
1. The macroeconomy of a certain country is described by the following set of equations:
Consumption: C = 0.8(Y − T) + 30 Investment: I = −2r + 40 Government expenditure: G = 30 Tax: T = 0.25Y + 20
The equilibrium condition of the monetary market is: 60/P= 0.8Y − 8r + 36 When P =1/3, how much is the equilibrium
A. 100
B. 200
C. 300
D. 400
E. None of the above
1-2. Please show the equation of the total demand. (In the form of “Y =…”)
A. Y =25/P+ 125
B. Y =50/P+ 125
C. Y =25/P+ 250
D. Y =50/P+ 250
E. None of the above
2. Suppose we are considering a Solow Model without technology progress. Y=K3/4L1/4 Population growth rate=0.03 The capital accumulation is sY-dK s=0.2, d=0.07 Please calculate the capital per capita under the steady state.
A. 20
B. 24
C. 8
D. 4
E. 12
F. 16
2-1. Please calculate the marginal product of labor at the steady state.
A. 2
B. 1/2
C. 4
D. 8
E. 1
F. None is correct.
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