Macroeconomics Answers

Last week the Monetary Policy Committee increased the Repo rate by 25 basis points.

1.1 Use the IS-LM-BP model and explain the impact of this decision on equilibrium interest rates

and output. Explain the short-, medium- and long-run impacts

diferenciate with respect to x and y U=25X^2/5Y^3/5  

From

the following

data

you

need to by all Methods

compute/GDPMP

NDP MP

value Added Method

1

Income

Method

(8) Expenditure

2

purchases

20000

Closing stock 2.501

opening stock

Indirect Tax

S

compensation of Employees

60000

(6)

Rent 25000

Interst 1000

profit

sow

(10)

Divident

undistributed profit 100.

Given:

C= 400+cYd

T=50+.10Y

I=10

G=23

Ye=736.36

The marginal prosperity to consume is

consider the following bivariate utility function

U=25X^2/5Y^3/5

1.find marginal utility of x and y

Y=C+I+G ,C=120+0.8Y , I=100+0.1Y ,G=300

Using cramer's rule find Y,C and I

your given the following national income model Y=C+I+G ,C=12+0.8Y ,I=100+0.1Y ,G=300

present the model to matrix formula.

Given Ca=20 c=MPC=3/4 Ip=I=20 a; determine equilibrium level of income when there is no government sector b;define equilibrium level of income When government spending is equal to 25 &no taxation c; define equilibrium level of income When government expenditure and tax is equal to 25

Suppose people’s income drops to $10,000. How much would this firm have to increase its advertising in order to counteract the drop in income? (

Given Ca=20 c=MPC=3/4 Ia=I=20 detemine equilibrium level of income when there is no government sector b; define equilibrium level of income when government spending is 25 &no taxation