Version of the goods market equilibrium condition, Macroeconomics

Version of the goods market equilibrium condition

An economy has full-employment output of 6000. Government purchases, G, are 1200. Desired consumption and desired investment are

C^d = 3600 - 2000r + 0.10Y, and

I^d = 1200 - 4000r, where Y is output and r is the real interest rate.

a. Find an equation relating desired national saving, S^d, to r and Y.

b. Using both version of the goods market equilibrium condition, equations Y = C^d + I^d +G, and S^d = I^d, find the real interest rate that clears the goods market. Assume that output equals full-employment output.

c. Government purchases rise to 1440. How does this increase change the equation describing desired national saving? Show the change graphically. What happens to the market-clearing real interest rate?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: Version of the goods market equilibrium condition

Reference No:- TGS064783

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Macroeconomics

Q : Prepare the required journal entry

Prepare the required journal entry based upon the cash count sheet. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Q : Find consequence for the incidence of price discrimination

As markets for some products and services experience greater global competition, what is the likely consequence for the incidence of price discrimination? Do you think global competition fosters or impedes price discrimination?

Q : Total production of final goods and services

Gross domestic product understates the total production of final goods and services because of the omission of :

Q : How much the gain seller can recognize

The land cost $40000. because the buyer has good credit and high interest rate on the note, the seller thinks the note's fiar market value will be $74,000. How much the gain seller can recognize?

Q : Version of the goods market equilibrium condition

Using both version of the goods market equilibrium condition, equations Y = C^d + I^d +G, and S^d = I^d, find the real interest rate that clears the goods market. Assume that output equals full-employment output. Government purchases rise to 1440.

Q : Explain wal-mart-s core customer base is low-income consumer

Wal-Mart's core customer base is the low-income consumer. Therefore, to compete for this customer group organic food farmers will be compelled to lower prices.

Q : What will profits be

Operating Leverage. You estimate that your cattle farm will generate $ 1 million of profits on sales of $ 4 million under normal economic conditions and that the degree of operating leverage is 8. What will profits be if sales turn out to be $ 3.5

Q : Unadvertised versions

A father goes to a pharmacy late at night for cold medicine for a sick child. There are many liquid cold medicines, all of which have almost exactly the same ingredients. Yet medicines with brand names that the man recognizes from television comme

Q : Effect of increase in demand on typical firm in industry

Which of the following describes the effect of this increase in demand on a typical firm in the industry? In the short run the typical firm increases its output but its total cost also rises, resulting in no change in profit.

1942799

Questions
Asked

3,689

Active Tutors

1430541

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: Version of the goods market equilibrium condition

Reference No:- TGS064783

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Prepare the required journal entry

Q : Find consequence for the incidence of price discrimination

Q : Total production of final goods and services

Q : How much the gain seller can recognize

Q : Version of the goods market equilibrium condition

Q : Explain wal-mart-s core customer base is low-income consumer

Q : What will profits be

Q : Unadvertised versions

Q : Effect of increase in demand on typical firm in industry

Monitoring the client for signs of withdrawal

Reviewing health record of a client with laryngeal cancer

Create a life map of meaningful events of your adolescence

Analyze the characters life journey in reverse

Does someone like mother teresa count as moral exemplar

In what ways human resources leveraged ai to recruit

Why advanced practice nurses must be equipped

Request for Solution File

Ask an Expert for Answer!!

Macroeconomics: Version of the goods market equilibrium condition

Reference No:- TGS064783

Recent Questions Asked Macroeconomics

Q : Prepare the required journal entry

Q : Find consequence for the incidence of price discrimination

Q : Total production of final goods and services

Q : How much the gain seller can recognize

Q : Version of the goods market equilibrium condition

Q : Explain wal-mart-s core customer base is low-income consumer

Q : What will profits be

Q : Unadvertised versions

Q : Effect of increase in demand on typical firm in industry

Asked Questions