subject
Business, 06.05.2020 02:39 GreenHerbz206

Consider an economy described by the following equations: Y=C+I+G C=150+0.6×(Y−T) I=500−50×r G=200 T=150 where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. If the economy were at full employment (that is, at the natural rate of output), GDP would be $1,400. Identify the equation(s) each of the following statements describes. Statement C I G T It is an autonomous amount, independent of other factors. It is a function of disposable income. It depends on the interest rate. The marginal propensity to consume in this economy is . Suppose the central bank's policy is to adjust the money supply to maintain the interest rate at 2%, so r = 2. When the interest rate is 2%, GDP is $ . GDP at an interest rate of 2% is the full-employment level. Assuming no change in monetary policy in government purchases by $ would restore GDP to the full-employment level. (Note: Assume that this change in fiscal policy has no crowding-out effect.) Assuming no change in fiscal policy, in the interest rate by % would restore GDP to the full-employment level.

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 16:30
Which type of data does your company collect from customers or potential customers? a. positioning datab. market share datac. primary datad. secondary data select the best answer from the choices provided
Answers: 1
question
Business, 22.06.2019 20:00
What part of the rational model of decision-making does the former business executive “elliott” have a problem completing?
Answers: 2
question
Business, 22.06.2019 20:30
Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear
Answers: 3
question
Business, 23.06.2019 03:30
What do u want to be when u grow up
Answers: 2
You know the right answer?
Consider an economy described by the following equations: Y=C+I+G C=150+0.6×(Y−T) I=500−50×r G=200 T...
Questions
question
Mathematics, 09.11.2020 18:00
question
Mathematics, 09.11.2020 18:00
question
Mathematics, 09.11.2020 18:00
question
Mathematics, 09.11.2020 18:00
question
Mathematics, 09.11.2020 18:00
question
Social Studies, 09.11.2020 18:00
Questions on the website: 13722367