QUESTION FOUR (15 MARKS) a) Let the national income model be given as Y = C...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION FOUR (15 MARKS) a) Let the national income model be given as Y = C + Io + G Cab(Y-To) G = gY (a > 0, 0 < b <1) (0 < g < 1) i) ii) Identify the endogenous variables Find the equilibrium national income b) The demand and supply functions of 2 commodities are given as Qa₁ = 18-3P₁ - P₂ Qs1 = -2 +4P₁₂ -2 + 3P₂ Qs2 = Qd2 = 12P₁ - 2P₂ Determine the equilibrium prices and quantities for the 2 goods using cramer's rule (6 marks) c) Prove young theorem using the following function q = x² + 5xy - y³ (1 mark) (4 mark) (4 marks) QUESTION FOUR (15 MARKS) a) Let the national income model be given as Y = C + Io + G Cab(Y-To) G = gY (a > 0, 0 < b <1) (0 < g < 1) i) ii) Identify the endogenous variables Find the equilibrium national income b) The demand and supply functions of 2 commodities are given as Qa₁ = 18-3P₁ - P₂ Qs1 = -2 +4P₁₂ -2 + 3P₂ Qs2 = Qd2 = 12P₁ - 2P₂ Determine the equilibrium prices and quantities for the 2 goods using cramer's rule (6 marks) c) Prove young theorem using the following function q = x² + 5xy - y³ (1 mark) (4 mark) (4 marks)
Expert Answer:
Answer rating: 100% (QA)
The question youve presented has several parts each pertaining to a different economic or mathematical concept Lets address each part one by one a Nat... View the full answer
Related Book For
Posted Date:
Students also viewed these mathematics questions
-
Let the national income model be given as Identify the endogenous variables (1 mark) Find the equilibrium national income (4 mark) The demand and supply functions of 2...
-
Prove Eulers theorem using the following function Q = 96K0.310.7
-
The market demand and supply functions for corn are the same as in exercise 15.1. Suppose the government wants to raise the price of corn to $3. What are the welfare effects of a price floor, price...
-
Liberty Ventures Inc. reported a $320,000 profit in 2020 and declared preferred dividends of $20,000. The following changes in common shares outstanding occurred during the year: Jan 1 100,000 common...
-
Discuss the scattering of a plane wave of electromagnetic radiation by a nonper-meable, dielectric sphere of radius and dielectric constant r. (a) By finding the fields inside the sphere and...
-
Dorsey Co. has expanded its operations by purchasing a parcel of land with a building on it from Bibb Co. for $255.000. The appraised value of the land is $60,000, and the appraised value of the...
-
A movie about a stockbroker who aided investors in picking which firms to invest in would most likely involve which subfield of finance? a. Investments b. Financial institutions and markets c....
-
The center of gravity G of a 3.5-lb unbalanced tracking wheel is located at a distance r = 0.9 in. from its geometric center B. The radius of the wheel is R = 3 in. and its centroidal radius of...
-
K Find the margin of error for the given values of c, s, and n. c=0.98, s=5, n=9 Click the icon to view the t-distribution table t-Distribution Table This quiz: 12 point(s) possible This question: 1...
-
CVS Health Corporation showed 2019 net income from continuing operations of $6,631 million. The following is an excerpt from a disclosure note to CVS Healths 2019 financial statements: Required: 1....
-
2. AAA and BBB formed partnership in 2009. The partnership agreement provides for annual salary allowances of P55,000 for AAA and P45,000 for BBB. The partners share profits equally and losses in a...
-
3. The following information relates to the activities of a production department of a factory for a certain period: Materials issued Rs 36000 Direct wages Rs 30000 Direct labor hours worked 25000...
-
1. For purposes of the Child Tax Credit, can Lisa claim as her dependent her son who is 15 years old, a US citizen, lived with Lisa for 12 months of the year, and Lisa paid \\\\( 100 \\\\% \\\\) of...
-
State A and State B are adjacent coastal states in Africa. The relationship between them has been characterised by political tensions, with occasional armed confrontations. Both States are parties to...
-
Value Electronics has a yearly demand of 100,000 units for their tablet. The order processing cost per order is $2,000, and inventory holding cost is $100/item/year. They have opted for the reorder...
-
(Corporate income tax) Sales for J. P. Hulett Inc. during the past year amounted to $4.2 million. Gross profits totaled $1.04 million, and operating and depreciation expenses were $504,000 and...
-
Your starting salary at a new company is $44,000 and it will increase by 2.5% each year. 0 answers
-
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
-
Using the IS-MP diagram, explain what happens to the economy if there is a temporary consumption boom that lasts for one period. (a) Initially, suppose the central bank keeps the nominal interest...
-
What is leverage, and why is it so important in understanding the financial crisis?
-
How are ideas different from objects? What are some examples of each?
-
What is the drawback of company rankings based on EVA?
-
If EPS rises after a deal, does this necessarily imply value creation?
-
Can value be created by developing new products and new markets or by reducing costs?
Study smarter with the SolutionInn App