How is government intervention in the economy justified in its implementation of measures to fight against covid-19 pandemic
If transactional money demand is mt= 0.4Y and speculative demand mz= 125 - 200r. What is the total money or how do you use these to calculate the LM equation?
In the labour market, explain how the rate of unemployment is related to the bargaining power and nominal wages.
P=20e^0.4Q and P=100e^-0.2 find equilibrium price and quantity and also consumer and producer surplus
If the supply and demand function are given p=20e^0.4Q and p=100e^-0.2Q, respectively .find the equilibrium price and quantity ,and calculate the consumers and producers surplus
Given that in an economy, , I, MS =300, Mt = 0.4Y, and Mz=125-200r where, Y= income, C= consumption, I= investment, MS= money supply, Mt= transactional-precautionary money demand, Mz= speculative money demand and r= interest rate. Calculate;
The equilibrium level of income and interest rate in this economy.
The level of C, I, Mt, and Mz when the economy is in equilibrium
Now, assuming the economy is open with government (G) participation and external trade which is summarized as follows; export(X)= 100-0.10Y, import(M)=50, G=100, Taxes(T)= 100 and C, I, MS, Mt, and Mz the same as defined in (a) above. Calculate;
The equilibrium income and interest rate in this new economy.
The level of C, I, Mt, and Mz when the economy is in equilibrium