(Appendix) This question asks you to use the formulas in Appendix 9.B to find the general equilibrium...
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a. Use the data from Numerical Problem 4 to find the numerical values of the parameters A, f1, f2, n0, nw, co > cY. cr > t0 > t, i0, ir, 0, y and, r defined in Appendix 9.B.
b. Substitute the values of these behavioral parameters into the relevant equations in Appendix 9.B to compute the general equilibrium values of the real wage, employment, output, the real interest rate, and the price level.
c. Assume that government purchases G increase to 72.5, and repeat part (b).
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Related Book For
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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