Examlex

Solved

An Economy Has Full-Employment Output of 5000

question 92

Essay

An economy has full-employment output of 5000.Government purchases are 1000.Desired consumption and desired investment are given by
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. = 3000 - 2000r + 0.10Y
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. = 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 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. = 2800 - 2000r + 0.10Y),find the equilibrium real interest rate,saving,investment,and consumption.


Definitions:

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.

Related Questions