1. Use the following information to answer the questions for this exam, make sure to show...

 

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1. Use the following information to answer the questions for this exam, make sure to show everything graphically as well as numerically: Labor Market and Production Function: W=5+2N W=35-N Y=5*N³K³, K=10 Goods Market: C=25+0.5*(Y-T) T=20 Money Market: M$=30/P, P=2 Md=1/2 (Y) - 100r G=15-100r I=10-50r a) What is the employer, employee, w*, Y*, and N*? How does the labor market relate to the IS/LM/FE and AD/AS model? Show graphically and solve numerically. b) Derive the IS and LR equations? What is the general equilibrium r*, Y* and P*? Show graphically and solve numerically. c) Suppose that there is an increase in T by 20%. What is the SR r, Y, and P? Show graphically and solve numerically. d) What is the LR r, Y, and P? Show graphically and solve numerically. 1. Use the following information to answer the questions for this exam, make sure to show everything graphically as well as numerically: Labor Market and Production Function: W=5+2N W=35-N Y=5*N³K³, K=10 Goods Market: C=25+0.5*(Y-T) T=20 Money Market: M$=30/P, P=2 Md=1/2 (Y) - 100r G=15-100r I=10-50r a) What is the employer, employee, w*, Y*, and N*? How does the labor market relate to the IS/LM/FE and AD/AS model? Show graphically and solve numerically. b) Derive the IS and LR equations? What is the general equilibrium r*, Y* and P*? Show graphically and solve numerically. c) Suppose that there is an increase in T by 20%. What is the SR r, Y, and P? Show graphically and solve numerically. d) What is the LR r, Y, and P? Show graphically and solve numerically.