Question: Hi, I only need help with a and dThanks a lot Long-Answer Questions 7. Consider the following two tables that describe Kazakhstan's economy, where Investment

 Hi, I only need help with a and dThanks a lot

Hi, I only need help with a and dThanks a lot

Long-Answer Questions 7. Consider the following two tables that describe Kazakhstan's economy,

Long-Answer Questions 7. Consider the following two tables that describe Kazakhstan's economy, where Investment is equal to 246.4: Tax Budget Net Disposable Autonomous Aggregate GDP Revenues Balance Exports Exports Income Consumption Consumption 3000 180 -320 260 170 3000 130 3010 5000 300 -200 260 110 5000 130 4930 7000 420 -80 260 50 7000 130 6850 9000 540 40 260 -10 9000 130 8770 a. Derive the Budget Balance equation: Budget Balance = Y - b. Derive the NX equation: NX = c. Derive the Consumption equation as a function of Yo: C = + YD d. Calculate Kazakhstan's equilibrium GDP in the AE model where prices are fixed. Round to the nearest integer. Equilibrium GDP = e. Treat the GDP you specified above as Kazakhstan's potential GDP (Y*). Now consider the following AS and AD equations: YAD = 6466 - 20P + 6G; YAS = 8974 + 4P - 4Poil f. If G = 500 and Poil = 45, the equilibrium price level in the economy is g. Suppose the price of oil increases dramatically to $105. The new equilibrium price level will be and equilibrium level of GDP is equal to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!