Examlex
An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by
= 3000 - 2000r + 0.10Y
= 1000 - 4000r
where Y is output and r is the expected real interest rate.
(a)Find the real interest rate that clears the goods market.Assume that output equals full-employment output.
(b)Calculate the amount of saving,investment,and consumption in equilibrium.
(c)If a shock to wealth causes desired consumption to decline by 200 (so that the new equation for desired consumption is = 2800 - 2000r + 0.10Y),find the equilibrium real interest rate,saving,investment,and consumption.
Facial Feedback Effect
The theory that facial expressions can influence emotional experiences.
Nonverbal Communication
The transmission of messages or signals through a non-linguistic means, such as facial expressions, body language, gestures, or tone of voice.
Facial Expressions
Visible manifestations of emotions, intentions, or social communications through movements or positions of the muscles beneath the skin of the face.
Botox Paralysis
A temporary paralysis of muscles resulting from the administration of botulinum toxin (Botox), often used for cosmetic purposes to reduce wrinkles.
Q13: Assume that prices and wages adjust rapidly
Q15: How has the severity and duration of
Q27: In the textbook model of endogenous growth,long-run
Q41: Which of the following macroeconomic variables is
Q49: Nominal personal consumption expenditures in the United
Q66: A temporary supply shock,such as an increase
Q67: The job finding rate is defined as<br>A)the
Q84: An increase in the effective tax rate
Q93: Zowie! Surfboards has the following production function.<br><img
Q97: A large country imposes capital controls that