Consider the two-sector model: Y t = C t + I t C t = 0.75Y t-1

Question:

Consider the two-sector model:
Y_t= C_t + I_t
C_t = 0.75Y_t-1 + 400
It = 200
Find the value of C₂, given that, Y₀ = 400.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Mathematics for Economics and Business

ISBN: 978-1292191669

9th edition

Authors: Ian Jacques

See More Books

Question Posted: Apr 18, 2019 10:25 AM

See More Questions

yt + 1 = 1.2yt with y0 = 2.0. When will the value exceed 100?
yt + 1 = -1.2yt with y0 = 2.0. When will the value exceed 100?
yt + 1 = 0.8yt with y0 = 2.0. When will the value be less than 0.2?
Not long ago, a conflict between a paper company and a coalition of environmental groups arose over the potential use of a Maine river for hydroelectric power generation. As one aspect of its case...
An ideal Rankine power cycle with reheat is shown in Fig. 8.33. Steam leaves the boiler at 8 MPa and 700°C with a mass flux of 20 kg/s. It leaves the high-pressure turbine (HPT) at 1 MPa and is...
The trial balance extracted at 30 April 20X1 from the books of Upton Upholstery, a furniture manufacturer, is given below. 1. At 30 April 20X1 accrued direct factory wages amounted to 600 and office...
What is the default filename that make will process if no other is given?
a. Do you agree with the controllers recommendation? Why or why not? b. Formulate an LP model for this problem. c. Create a spreadsheet model for this problem and solve it using Solver. d. What is...
A small electric immersion heater is used to heat 87 g of water for a cup of instant coffee. The heater is labeled "120 watts" (it converts electrical energy to thermal energy at this rate)....
Anthony Liu, CPA, prepared the flowchart on the next page that portrays the raw materials purchasing function of one of Anthonys clients, Medium-Sized Manufacturing Company, from the preparation of...
Consider the supply and demand equations Q St = 0.4P t1 12 Q Dt = 0.8P t + 60 Assuming that equilibrium conditions prevail, find an expression for P t when P 0 = 70. Is the system stable or unstable?
The HarrodDomar model of the growth of an economy is based on three assumptions. (1) Savings, S t , in any time period are proportional to income, Y t , in that period, so that S t = aY t (a > 0) (2)...
In below Exercises, find the areas of the shaded regions under the given normal curves. 1. 2. 10 4 3.5 4.5
company that is using its assets at only 85% of their full capacity generated Sales of $680,000 last year. The company's Net Profit Margin was 7.6% and they paid dividends equal to 22% of net profit....
In 2022, Rich (28) lived with his daughter, Ava (4), his brother, Joe (18), and his fiance, Linda (30) for the entire year. Rich's adjusted gross income is $36,555, Joe's gross income is $4,100,...
Display the American flag using a nested loop of these dimensions: 7x20 flag 4x7 stars as Alternate and to represent stripe colors ***** === ======
Connor and Martin are contemplating international business in their industry and feel that global expansion is a great transition for the company. They do not feel as if they understand IFRS and are...
In Fig. 6-14, a mass of 30 kg Is supported by a compression member CD and two tension members AC and BC. CD makes an angle of 400 with the wall. A, B, and Care in a horizontal .plane. AEEB-1000 mm....
The asteroid 243 Ida has its own small moon, Dactyl. (See the photo on p. 394.) Another such system, asteroid 624 Hektor, has a mass of 7.9 1018 kg, with its moon orbiting at a radius of 623.5 km...
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
In Problem determine whether the given set is finite or infinite. Consider the set N of positive integers to be the universal set. {n N| n < 1000}
In Problem determine whether the given set is finite or infinite. Consider the set N of positive integers to be the universal set. {n N| n > 100}
In Problem determine whether the given set is finite or infinite. Consider the set N of positive integers to be the universal set. {n N| n > 100}
If the percentage change in net income changes faster than the percentage change in revenues, what is happening in the business?
What industry standards were used for the basis of the audit? explain all industry standards in detail with examples.
GIVE COMPREHENSIVE EXAMPLES OF HOW INACCURATE,INCOMPLETE,OR OUTDATED DATA LEAD TO MEDICAL ERRORS,DELAYS IN TREATMENT OR OTHER PROBLEMS

Consider the two-sector model: Y t = C t + I t C t = 0.75Y t-1

Question:

Step by Step Answer:

C 075Y 400 0...View the full answer

Mathematics for Economics and Business

Students also viewed these Mathematics questions