Soru

4. (30 points) Consider an economy described as follows: Y=C+I+G Y=9,000 G=2,000 T=1,000 C=2000+1/2(Y-T) I=1,600-100r a) In this economy.compute private saving, public saving, and national saving. b) Find the equilibrium interest rate. c) Now suppose that G is increased by 100. Compute private saving public saving, and national saving. d) Find the new equilibrium interest rate.
Çözüm
4.4242 Voting
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Pelinsu
Elit · 8 yıl öğretmeniUzman doğrulaması
Cevap
a) To compute private saving, public saving, and national saving, we first need to find the equilibrium level of output (Y) using the given equations.
Given:
Y = 9,000
G = 2,000
T = 1,000
C = 2,000 + 1/2(Y - T)
I = 1,600 - 100r
We can substitute the given values into the consumption function to find C:
C = 2,000 + 1/2(9,000 - 1,000) = 5,000
Now, we can find the equilibrium level of output (Y) by setting the total output (Y) equal to the sum of consumption (C), investment (I), and government spending (G):
Y = C + I + G
9,000 = 5,000 + (1,600 - 100r) + 2,000
9,000 = 8,600 - 100r
100r = 600
r = 6
Now that we have the equilibrium interest rate (r), we can compute private saving, public saving, and national saving.
Private saving = Disposable income - Consumption
Private saving = (Y - T) - C
Private saving = (9,000 - 1,000) - 5,000 = 3,000
Public saving = T - G
Public saving = 1,000 - 2,000 = -1,000
National saving = Private saving + Public saving
National saving = 3,000 - 1,000 = 2,000
b) The equilibrium interest rate is 6.
c) Now suppose that G is increased by 100. We need to compute private saving, public saving, and national saving.
Given:
Y = 9,000
G = 2,100
T = 1,000
C = 2,000 + 1/2(Y - T)
I = 1,600 - 100r
Substituting the given values into the consumption function:
C = 2,000 + 1/2(9,000 - 1,000) = 5,000
Now, we can find the new equilibrium level of output (Y) by setting the total output (Y) equal to the sum of consumption (C), investment (I), and government spending (G):
Y = C + I + G
9,000 = 5,000 + (1,600 - 100r) + 2,100
9,000 = 7,800 - 100r
100r = 200
r = 2
Now that we have the new equilibrium interest rate (r), we can compute private saving, public saving, and national saving.
Private saving = Disposable income - Consumption
Private saving = (Y - T) - C
Private saving = (9,000 - 1,000) - 5,000 = 3,000
Public saving = T - G
Public saving = 1,000 - 2,100 = -1,100
National saving = Private saving + Public saving
National saving = 3,000 - 1,100 = 1,900
d) The new equilibrium interest rate is 2.
Given:
Y = 9,000
G = 2,000
T = 1,000
C = 2,000 + 1/2(Y - T)
I = 1,600 - 100r
We can substitute the given values into the consumption function to find C:
C = 2,000 + 1/2(9,000 - 1,000) = 5,000
Now, we can find the equilibrium level of output (Y) by setting the total output (Y) equal to the sum of consumption (C), investment (I), and government spending (G):
Y = C + I + G
9,000 = 5,000 + (1,600 - 100r) + 2,000
9,000 = 8,600 - 100r
100r = 600
r = 6
Now that we have the equilibrium interest rate (r), we can compute private saving, public saving, and national saving.
Private saving = Disposable income - Consumption
Private saving = (Y - T) - C
Private saving = (9,000 - 1,000) - 5,000 = 3,000
Public saving = T - G
Public saving = 1,000 - 2,000 = -1,000
National saving = Private saving + Public saving
National saving = 3,000 - 1,000 = 2,000
b) The equilibrium interest rate is 6.
c) Now suppose that G is increased by 100. We need to compute private saving, public saving, and national saving.
Given:
Y = 9,000
G = 2,100
T = 1,000
C = 2,000 + 1/2(Y - T)
I = 1,600 - 100r
Substituting the given values into the consumption function:
C = 2,000 + 1/2(9,000 - 1,000) = 5,000
Now, we can find the new equilibrium level of output (Y) by setting the total output (Y) equal to the sum of consumption (C), investment (I), and government spending (G):
Y = C + I + G
9,000 = 5,000 + (1,600 - 100r) + 2,100
9,000 = 7,800 - 100r
100r = 200
r = 2
Now that we have the new equilibrium interest rate (r), we can compute private saving, public saving, and national saving.
Private saving = Disposable income - Consumption
Private saving = (Y - T) - C
Private saving = (9,000 - 1,000) - 5,000 = 3,000
Public saving = T - G
Public saving = 1,000 - 2,100 = -1,100
National saving = Private saving + Public saving
National saving = 3,000 - 1,100 = 1,900
d) The new equilibrium interest rate is 2.
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