Find the equilibrium level of GDP demanded in an economy in which investment is always $300, net
Question:
Find the equilibrium level of GDP demanded in an economy in which investment is always $300, net exports are always 2$50, the government budget is balanced with purchases and taxes both equal to $400, and the consumption function is described by the following algebraic equation:
C = 150 + 0.75DI
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
Y C I G X IM C 150 075Y 40...View the full answer
Answered By
Jinah Patricia Padilla
Had an experience as an external auditor in Ernst & Young Philippines and currently a Corporate Accountant in a consultancy company providing manpower to a 5-star hotel in Makati, Philippines, Makati Diamond Residences
5.00+
120+ Reviews
150+ Question Solved
Related Book For
Macroeconomics Principles And Policy
ISBN: 9780324586213
11th Edition
Authors: William J. Baumol, Alan S. Blinder
Question Posted:
Students also viewed these Economics questions
-
In an economy in which the multiplier has a value of 3, the price level has decreased from 115 to 110. As a consequence, there has been a movement along the aggregate demand curve from $15 trillion...
-
In an economy in which government expenditure is $100 billion, exports are $60 billion, imports are 15 percent of real GDP, autonomous consumption is $250 billion, investment is $350 billion, and the...
-
Advertising can rarely be successful in an economy in which demand is greater than supply. Why?
-
machine element is made of an alloy with Yield strength of 200 Mpa and fracture strain is 0.08. A machine element is characterized by the normal stress components as shown in the figure. The Answer...
-
A piston-cylinder arrangement operates on an air-standard cycle composed of the following four processes: (1-2) An isentropic-compression process that takes air from 14.7 psia and 50F to a pressure...
-
Auditors might be helped in determining the chances of fraud if they carefully measure cash flow. To evaluate if auditors might be helped in determining the chances of fraud if they carefully measure...
-
In June 2014, Biltmore Construction Company (BCC) was hired by the City of Phoenix, Arizona, to assist in constructing its new Trade Center complex. The construction agreement called for work to...
-
1. Think about the business benefits of the mobile CRM deployments discussed in the case. How did Dow Corning and DirecTV benefit from these applications? What can they do that was not possible...
-
Ace Health Insurance Inc. (AHI) offers health insurance to millions of customers in the US. The AHI management is concerned about the rising customer support costs at their call center. A management...
-
Give all answers to 3 significant figures. a. 1.20 dm 3 of hydrogen chloride gas was dissolved in 100 cm 3 of water. i. How many moles of hydrogen chloride gas are present? ii. What was the...
-
Use both numerical and graphical methods to find the multiplier effect of the following shift in the consumption function in an economy in which investment is always $220, government purchases are...
-
Referring to Test Yourself Question 1, do the same for an economy in which investment is $250, net exports are 0, government purchases and taxes are both $400, and the consumption function is as...
-
The CDC, FEMA, and DHS have all used the zombie apocalypse to promote emergency preparedness. Do you think this attention- getting tactic minimizes the importance of emergency preparedness planning?...
-
Suppose that an August Call option to buy a share for \(\$ 600\) costs \(\$60.5\) and is held until August. (a) Under what circumstances will the holder of the option make a profit? (b) Under what...
-
In a binomial tree with \(n\) steps, let \(f_{j}=f_{u \ldots u d \ldots d}(j\) times \(u\) and \(n-j\) times \(d\) ). For a European Call option expiring at \(T=n \Delta t\) with strike \(K\), show...
-
Show that the stochastic process \[e^{\int_{0}^{t} c(s) d B_{s}-\frac{1}{2} \int_{0}^{t} c^{2}(s) d s}\] is a martingale for any deterministic function \(c(t)\). Does the result change if \(c(t,...
-
Describe your responsibilities as a health care manager as they apply to fraud and abuse. What if you were a unit manager? A department manager? A member of the executive division?
-
Suppose that last season, the top pick in a 30-team league's amateur draft signed a contract for \($2\) million per year. In the upcoming season, the league will implement a salary slotting system...
-
In 2009, the inflation rate reached negative 0.4 percent while the unemployment rate hit 10 percent. If the target inflation rate was 2 percent and the full-employment rate of unemployment was 5...
-
An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days after the issue date at a rate of 6.8% p.a., calculate the amount of...
-
State the contrapositive and converse. If today is Tuesday, then we are not in Belgium.
-
College professors are highly skilled (or at least highly educated!) laborers, yet their wages are not very high. Is this a refutation of the marginal productivity theory?
-
It seems to be a well-established fact that workers with more years of education typically receive higher wages. What are some possible reasons for this trend?
-
Approximately what fraction of the U.S. labor force belongs to unions? (Try asking this question of a person who has never studied economics.) Why do you think this fraction is so low?
-
I'm comparing the age for educated Male-owned businesses and the age for educated Women-owned businesses by using the result below that I got from my data. * I want to analyze and summarize my data...
-
Hi i am using excel to calculate my NPV. when calculating NPV should i include the year zero in the calculation and if i should how should i calculate it?
-
1 . Assume today s settlement price on a CME EUR futures contract is . You have a short position in one contract. Your performance bond account currently has a balance of $ 1 , 7 0 0 . The next three...
Study smarter with the SolutionInn App