1. Consider the US macroeconomic model: < C = 200 +0.75ya ya = Y - T...

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1. Consider the US macroeconomic model:< C = 200 +0.75ya ya = Y - T T = 100 1 = 754 G = 250 Y = 2000 where the variables are consumption expenditure C, Real GDP Y, disposable income Ya, net Taxes T, investment I, government expenditure G, and potential real GDP Y (a). (6%) Please calculate the equilibrium expenditure (b). (6%) Calculate the government expenditure multiplier and balanced budget multiplier (c). (6%) Whether the recession gap exist in US? (d). (7%) How can the government achieve potential real GDP output while maintaining a balanced budget? 2. Consider the Nepal AD-AS curves. The aggregate demand curve is Y = 250 - 1,25p + 5G.< The following equation describe the aggregate supply curve:< Y = 120 + 0.75p - 20w, where the variables are Real GDP Y, price level p, the real wage rate w, the government expenditure G. Please answer the following questions.< (a) (6%) If G = 10 and w = 1, please calculate short-run equilibrium real GDP. When the potential real GDP Y = 175, does Nepal economy exist inflationary or recession gap?< (b) (7%) If G = 20 and w = 1, please calculate short-run equilibrium real GDP. Whether does Nepal economy have recession gap? Please explain.< 3. In the United Kingdom, the currency drain ratio is 38% of deposits and the reserve ratio is 2% of deposits. In Australia, the quantity of money is $150 billion, the currency drain ratio is 33% of deposits, and the reserve ratio is 8% of deposits. (a) (6%) Calculate the UK. Money multiplier. (b) (6%) Calculate the monetary base in Australia.< 1. Consider the US macroeconomic model:< C = 200 +0.75ya ya = Y - T T = 100 1 = 754 G = 250 Y = 2000 where the variables are consumption expenditure C, Real GDP Y, disposable income Ya, net Taxes T, investment I, government expenditure G, and potential real GDP Y (a). (6%) Please calculate the equilibrium expenditure (b). (6%) Calculate the government expenditure multiplier and balanced budget multiplier (c). (6%) Whether the recession gap exist in US? (d). (7%) How can the government achieve potential real GDP output while maintaining a balanced budget? 2. Consider the Nepal AD-AS curves. The aggregate demand curve is Y = 250 - 1,25p + 5G.< The following equation describe the aggregate supply curve:< Y = 120 + 0.75p - 20w, where the variables are Real GDP Y, price level p, the real wage rate w, the government expenditure G. Please answer the following questions.< (a) (6%) If G = 10 and w = 1, please calculate short-run equilibrium real GDP. When the potential real GDP Y = 175, does Nepal economy exist inflationary or recession gap?< (b) (7%) If G = 20 and w = 1, please calculate short-run equilibrium real GDP. Whether does Nepal economy have recession gap? Please explain.< 3. In the United Kingdom, the currency drain ratio is 38% of deposits and the reserve ratio is 2% of deposits. In Australia, the quantity of money is $150 billion, the currency drain ratio is 33% of deposits, and the reserve ratio is 8% of deposits. (a) (6%) Calculate the UK. Money multiplier. (b) (6%) Calculate the monetary base in Australia.<

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a To calculate the equilibrium expenditure we need to set aggregate expenditure AE equal to real GDP Y AE C I G Given C 200 075Yd Yd Y T T 100 I 75 G 250 Substituting the given values into the equatio... View the full answer