Consider the following national-income model. Y=C+I+G. C=a+b(Y-T) where a > 0, b = (0,1). G=gY where...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following national-income model. Y=C+I+G. C=a+b(Y-T) where a > 0, b = (0,1). G=gY where g = (0,1). a) Identify the endogenous variables. b) Give the economic interpretation of the parameter g. c) Find the equilibrium national income. d) What restrictions on the parameter is needed for a solution to exist? Find Y and C from the following. Y=C+I+G₁- C = 25+6√Y I=16. G₁ = 14. Consider the following national-income model. Y=C+I+G. C=a+b(Y-T) where a > 0, b = (0,1). G=gY where g = (0,1). a) Identify the endogenous variables. b) Give the economic interpretation of the parameter g. c) Find the equilibrium national income. d) What restrictions on the parameter is needed for a solution to exist? Find Y and C from the following. Y=C+I+G₁- C = 25+6√Y I=16. G₁ = 14.
Expert Answer:
Answer rating: 100% (QA)
a The endogenous variables are consumption and income Values for these variables are only determ... View the full answer
Related Book For
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying
Posted Date:
Students also viewed these accounting questions
-
In the linear consumption function The (estimated) marginal propensity to consume (MPC) out of income is simply the slope, , while the average propensity to consume (APC) is Using observations for...
-
In an auto body shop, it is known that the average number of paint blemishes per car is 3. If 2 cars are randomly chosen for inspection, what is the probability that: (a) The first car has no more...
-
a. What is the marginal propensity to consume implicit in these data? b. Plot a 45° line, and then use the data to draw an aggregate expenditure line. c. What is the equilibrium level of real...
-
Why are variances usually written off to cost of goods sold?
-
Employing the bond enthalpy values listed in Table 8.4, estimate the molar enthalpy change occurring upon (a) Polymerization of ethylene, (b) Formation of nylon 6,6, (c) Formation of polyethylene...
-
A person tosses a ball for her puppy to retrieve. The ball leaves her hand horizontally with a speed of 4.6 m/s. If the initial height of the ball is 0.95 m above the ground, how far does it travel...
-
For each of the following situations, calculate the \(z\)-statistic \((z)\). a. \(\mathrm{X}^{-}=8.00 ; \mu=5 ; \sigma=6 ; N=16\) b. \(\mathrm{X}^{-}=4.00 ; \mu=2 ; \sigma=8 ; N=25\) c....
-
Fruity Juices, Inc. produces five different flavors of fruit juice: apple, cherry, pomegranate, orange, and pineapple. Each batch of product requires processing in three departments (blending,...
-
Mega Corp., a semiweekly depositor, incurs a deposit liability on Wednesday, March 3 1 , of $ 9 9 , 0 0 0 . On Thursday, April 1 , it incurs an additional liability of $ 5 , 0 0 0 . When are these...
-
It seems that some countries like China may be developing hybrid HRM systems. What are some of the advantages and disadvantages of the hybrid HRM system?
-
Is it alright to practice acrylic painting alongside digital illustrations or should a student stick to one medium at a time?
-
The position of a particle moving along a coordinate line is s80+4t, with s in meters and t in seconds. Find the particle's velocity and acceleration at t=5 sec. The velocity at t=5 sec is m/sec. 5...
-
For the given function find af and of +2 f(x,y)=-11 In y
-
The radius of a spherical balloon is increasing at a rate of 2 centimeters per minute. How fast is the surface area changing when the radius is 8 centimeters? Hint: The surface area is S = 4r. Rate...
-
A 13m long ladder is leaning against a wall. The top of the ladder is sliding down the wall at a constant speed of 5m/s. How quickly is the bottom of the ladder moving away from the wall when the top...
-
A 15 foot ladder is leaning against a wall. If the top slips down the wall at a rate of 2 ft/s, how fast will the foot be moving away from the wall when the top is 13 feet above the ground? The foot...
-
The table below enumerates each possible path through the tree. The bottom row, path 4, is missing two values. Provide the missing probability and the missing present value. Ending Present Path...
-
Suppose that a company has 10.000 outstanding shares in the beginning of the year. On April 1st, the company increases its shares by 6.000. On July 1st, the company increases its shares again, but...
-
Exercise and diet are being studied as possible substitutes for medication to lower blood pressure. Three groups of subjects will be used to study the effect of exercise. Group one is sedentary while...
-
A shipment of 12 television sets contains 3 defective sets. In how many ways can a hotel purchase 5 of these sets and receive at least 2 of the defective sets? Discuss.
-
A class in advanced physics is comprised of 10 juniors, 30 seniors, and 10 graduate students. The final grades show that 3 of the juniors, 10 of the seniors, and 5 of the graduate students received...
-
Which of the following does not occur in the small intestine? (a) Bile from the gall bladder breaks fats into small droplets. (b) Nutrients are absorbed into the body. (c) Proteins are broken down....
-
Which blood vessels are responsible for nutrient and waste exchange with tissues?
-
Trace the path of blood through the body, beginning with blood returning from the tissues to the heart. Be sure to name each of the chambers of the heart.
Study smarter with the SolutionInn App