6. Derive the functional form of the IS curve for the following economy: [Hint: Use the equilib- rium condition and isolate Y on LHS and all other terms on RHS, i.e., Y : C = C, + C1(Y – T), G = Ğ,I = I, – 1(r),T =Ť ISo + IS1(r)]
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![6. Derive the functional form of the IS curve for the following economy: [Hint: Use the equilib-
rium condition and isolate Y on LHS and all other terms on RHS, i.e., Y = ISo + IS1(r)]
C = C, + C(Y – T),G = Ğ,I = I, – I,(r),T = T](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd920f800-7cb4-4708-a86f-fdc64006663e%2F00eecd1a-6ce8-47c6-bfcb-77b363a993be%2Fwg6qs_processed.png&w=3840&q=75)
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- 6. Consider a three-sector input-output model in which sector 1 is agriculture, sector 2 is manufacturing, and sector 3 is energy. Suppose that the input requirements are given by the following table: Units of agricultural goods Units of manufactured goods Units of energy output 1 unit of agricultural goods needs a 0.4 0.3 1 unit of manufacturing goods needs 0.2 0.1 0.2 1 unit of energy output needs a. Write down the Leontief equation system for the problem. b. What are the values of a and b that give the system unique solution. 0.2 0.2 0.1 (where 0 0), respectively. If x1, x2, and x3 denote the number of units that have to be produced in the three sectors,Given the following: C(YT) = 200+ 0.75(Y-T) I(r) = 80-20r L(r,Y)=Y-90r G = 200 T = 75 M = 2500 P = 4 a) What is the exact expression for the IS curve (express Y in terms of r)? b) What is the exact expression for the LM curve (express Y in terms of r)?1. Suppose that an equation for infant mortality is described by the function: i= Y()". where i is the infant mortality rate (expressed in per 1,000 children), Y is the gross domestic product (in US dollars), P is the population, and B and b are constants. d. Assume that b = 492.7 and ß = 0.2. Derive a specific linear equation on the relationship of i and y from the linear equation in (a). Interpret the slope coefficient. Using the equation in (d), compute for the infant mortality rate given that a GDP per capita of $3, 650 and of $4, 100. e. f. If GDP per capita GDP increases from $3,650 to $4, 100, estimate the percent change in infant mortality rate by using the computed values in (e). g. If GDP per capita increases from $3,650 to $4, 100, estimate the percent change in infant mortality by using the elasticity in the equation in (d). Compare this result to that in (f).
- 1. Which of the following equations is the correct expression of the IS curve? ao+Bo-B₁i+G a. Y = b. Y= C. d. Y= 1-α₁ (1-t) C+I+G Y = 1-a₁ (1-1) ao+Bo-B₁i+G 1+α₁ (1-t) C+I+G 1+a₁ (1-1)1. The Grossman model uses the economic concept of a production function. Before you dive deeply into the Grossman model though, I want you to think more generally about the concept of a production function as it relates to health status. A production function describes the relationship between inputs and outputs for a production process. For a business, the inputs are labor, capital, raw materials, etc. and the output is the finished product. The production function is often describe mathematically using an equation like the one below: Y = K¹/3L2/3 Where Y is the amount of output from using K units of capital and L units of labor. a. Now consider a production function for something very different: in the United States. That is, consider a average life expectancy production function where Y = life expectancy measured in years. What do you think are the primary inputs? That is, what are the variables on the right-hand side of the equation? Hint: think broad categories...and there are…write a short note about the following variables and support your answers by giving examples for each variable: TFC , TC , VC , MC
- quiz 1 (page 1 of 5) 105 econ مبادئ في الاقتصاد الرياضی ش 2 و ش elearning yu.edu.jo Question 1 Not yet answered Question 3 Marked out of 1.00 Not yet answered Marked out of 1.00 **Assume that you have the following equations: Simplify the following expression: 3X(8x+9)- X(X+7) 4P+4Q=16 2P-Q=2 The equilibrium price is: O a. 23x2 + 20X O a. P=5 O b. X2-30X O b. P=6 O c. 25X2 + 32X Oc. P-2 d. 21X2-24X O d. P-4 e. None of the above O e. None of the above Clear my choice Clear my choice Next page Next page Quiz navigation Quiz navigation 12 31 4 ...Consider the model of a firm that produces final goods using R&D and components as inputs, with cost dataas follows:Assembly: Total cost of production = PAQA = 400Earnings of High-Skilled Labor = WHHA = 100Earnings of Low-Skilled Labor = WLLA = 200Earnings of Capital = RKA = 100R&D: Total cost of production = PRQR = 400Earnings of High-Skilled Labor = WHHR = 175Earnings of Low-Skilled Labor = WLLR = 125Earnings of Capital = RKR = 100A) Which factor is assembly intensive? In which factor(s) is R&D intensive?B) Suppose that due to the opening of trade, the price of assembly falls by ∆PA/PA = −20%, the price of R&D remains unchanged, ∆PR/PR = 0%, and capital’s share earnings remains constant.C) What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?The equation for the IS curve is (note that α corresponds to alpha as defined in the lecture notes) Y = A-bar x 1/(1-b(1-t)+m) Y = C+I+G+NX Y = αA-bar- αdi Y = 1/k(hi+M/P) Y = I-bar-di
- Explain the relationship between these two formulas: Y = C + I + G + EX – IM S = (Y – T – C) + (T – G)In 1928, Charles Cobb and Paul Douglas published a study in which they modeled the growth of the US economy during the period 1899 to 1922. The function used to model production was of the form: (1) P(L, K) = 6LªK!-a where P is total production (monetary value of goods produced in the year); L, the amount of work (total number of person-hours worked in a year); and K, the amount of capital invested (monetary value of machinery, equipment and buildings). In these terms, the hypotheses made by Cobb and Douglas can be stated as follows: (i) If either labor or capital cancel each other out, so does production. (ii) The marginal productivity of labor is proportional to the amount of output per unit of work. (iii) The marginal productivity of capital is proportional to the amount of production per unit of сapital. 1. The output per unit of work is (a) Tick the alternative that, for some constant a, describes the hypothesis (ii) = aP·L. = a. P () aL L P = a. (b) If we keep K constant, K = K0,…1. Write this system of equations in matrix form. X1 + X2 + X3 = 1; x1 – X2 = 4; X2 + X3 = 7.