Monday
October 20, 2014

Homework Help: Macroeconomics

Posted by Anonymous on Saturday, October 1, 2011 at 5:51pm.

2. Assume that GDP (Y) is 5,000. Consumption (C) is given by the equation
C = 1,200 + 0.3(Y-T) 50r where r is the real interest rate. Investment (I) is given by the equation I = 1,200 50r. Taxes (T) are 1,000 and government spending (G) is 1,500.

a. What are the equilibrium values of C, I and r?
b. What are the values of private saving, public saving and national saving?
c. Now assume there is a technological innovation that makes business want to invest more. It raises the investment equation to I = 2,100 50 r. What are the new equilibrium values of C, I, and r?
d. What are the values of private saving, public saving and national saving?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Macro Help - Calculating Marginal Propensity to Save and Marginal Propensity to ...
macroeconomics 2year uni - Consider the following numerical version of the IS-LM...
macroeconomics - i have a college macroeconomics question due tommorow can u ...
macroeconomics - 1 The most important reason for the slope of the aggregate ...
Macroeconomics - Calculating the Rate of Growth of Per Capita Real GDP The ...
AP Macroeconomics - 3. You buy a certificate of deposit (CD) that pays a nominal...
Macroeconomics - Which of the following aren't included in the measurement of ...
Macroeconomics - If government spending (G) becomes negatively sensitive to ...
macroeconomics - Year - 2000 Nominal GDP: 9,817 Real GDP: ___________ GDP ...
social sciences - Consider the following numerical version of the IS-LM model: C...

Search
Members