! 1. Consider the following economy:C =co + c1 (Y – T),II == ao + a1Y,I2(1+s) I1,T=sl + G andZ = C+I2 + Ğ.Parameters a and co are positive: ao > 0 and co > 0. Parameters a1,ci and s are between 0 and 1: a1 € (0, 1), cı E (0, 1) and s e (0, 1). Inthis economy, business investment (I1) depends on the level of economicactivity (Y). The government wants to encourage investment so for eachdollar of investment they offer a subsidy of s dollars (think of the subsidyas a negative tax: instead of taking money from you, the governmentgives money to you).(a) Derive an expression for the equilibrium level of output.What is the government expenditure multiplier?(b) If s = 0, what is the equilibrium level of output?What isthe government expenditure multiplier?Briefly explainwhy the multiplier has this value.(c) Use algebra to compare the goveri.nient expenditure multipliers inparts (a) and (6).Which one is greater?Brieflyexplain the economic intuition behind your result

Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…

(a) Derive an expression for the equilibrium level of output. What is the government expenditure multiplier? (b) If s = 0, what is the equilibrium level of output? the government expenditure multiplier? why the multiplier has this value. What is Briefly explain (c) Use algebra to compare the government expenditure multipliers in parts (a) and (b). Which one is greater? explain the economic intuition behind your result Briefly

(a) Derive an expression for the equilibrium level of output. What is the government expenditure multiplier? (b) If s = 0, what is the equilibrium level of output? the government expenditure multiplier? why the multiplier has this value. What is Briefly explain (c) Use algebra to compare the government expenditure multipliers in parts (a) and (b). Which one is greater? explain the economic intuition behind your result Briefly

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Suppose an economy is given by the following equations: C = 150 +0.25Yd I= 150 +0.25Y - 1000i G = 250 T = 200 (M/P) = 1400 Y L(i)=2Y - 8000i Yn (Natural level of output) = 1200 Using the above information, answer the following. (a) (5) Derive the IS and LM equations. (b) (5) Find equilibrium Y and equilibrium i. Is the economy in a recession or a boom?
- 16 (10%) (page 2 of 3)- Google Chrome urses.open.uwi.edu/mod/quiz/attempt.php?attempt3D43724&cmid3D461748&page=D1 Exchange 2020 12015 Mathematical Methods of Economics I | S2 20 Ensure that you show ALL workings. Graphs NOT required. n tyn- A company produces two types of can openers: Model I and Model 2. Each require the use of three machines: A, B and C. Model I requires 2 hours on machine A, 1 hour on machine B and 1 hour on machine C. Model II requires 1 hour on machine A, 2 hours on machine B and 1 hour on machine C.The maximum number of hours available for machine A, B and C are 180, 160 and 100 respectively. The profit on Model I is $4 and Model Il is $6. on Write down the LP model. Identify the coordinates of the extreme points of the feasible region. Paragraph -BIEE W 99+
7. Given the following information: Ca = 1500 10 r, G = 500 | = 500 - 40 r, T = 200 + 0.2 Y C = Ca + 0.80 Yd , Nx = 600 0.2 Y Write the IS equation Enter your answer
Assume that an economy is based on three industrial sectors: agriculture (A), building (B), and energy (E). The technology matrix M is: A BE uarruarruarr (4 [0.6 0.2 0.1 0.4 0.1 0.1 0.4] 0.1 0.1 B 0.1 M How much input from A, B, and E are required to produce a dollar's worth of output for B? How much input from A is required to produce a dollar's worth of output for B? How much input from B is required to produce a dollar's worth of output for B? How much input from E is required to produce a dollar's worth of output for B ? Assume that an economy is based on three industrial sectors: agriculture (A), building (B), and energy (E). The technology matrix M is: A BE ↑ ↑ ↑ A-> 0.6 0.2 0.1 B-> =M 0.1 0.4 0.1 E-> 0.1 0.1 0.4 How much input from A, B, and E are required to produce a dollar's worth of output for B? How much input from A is required to produce a dollar's worth of output for B? How much input from B is required to produce a dollar's worth of output for B? How much input from E…
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A2) Economics Assuming that the government intends to adopt a ride-sharing scheme to solve the problem of rush hour traffic congestion, the ride-sharing scheme is therefore evaluated. Known: B0 = 0, Bt = 60, t = 1, 2,… (for a perpetual gain); C0 = 1,000, Ct = 0, t = 1, 2,…. Among them, t represents the year, and Bi and Ci are divided into the benefit and cost of the i-th year. Assuming that inflation and government taxation are not considered, if the discount rate is 5%, try to use the present value criterion, the internal rate of return and the profit-to-price ratio method to evaluate whether this multiplication plan is feasible?
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