1. C = 500 + 0.75Y, I = 1,000,G = 1,600, X = 300, M = 400. Calculate the equilibrium values of C and S. Is there any evidence of "crowding out"? Explain.

According to Okun's Law, what is the current unemployment rate, if the natural rate of unemployment = 7% and full-employment GDP = 12,766?
SHOW ALL WORK CLEARLY

2. Recall that for equilibrium, AD = AS, Suppose AD and AS , both functions of
real GDP (Y) and the price level (P), are known to be:

AD : Y = 3000 - 200P
AS : Y = 1500 + 100P

Determine :

i) The equilibrium GDP and P
ii) V if the money supply = 2,500
iii) The equilibrium rate of interest(i) if money demand Md = 2600-1000i

Question 1
In order to find the equilibrium C and S, we should first find the equilibrium GDP (denoted by Y). This is done by solving the following equation:

Y = C +I + G + (X-M)

Plugging the values we have for C, I, etc, we get:

Y = 500 + 0.75Y + 1000 + 1600 + (300 - 400)

Solving for Y:
0.25Y = 3000
Y = 12000

So the equilibrium GDP is 12,000. Now, in order to find C, we simply plug this value into the consumption equation:

C = 500 + 0.75Y
C = 500 + 0.75*12000 = 9,500

Finally, savings (S) is simply calculated as:

S = Y - C = 12000 - ...

Solution Summary

This posting shows the interest rate and other factors.

... Also, find the equilibrium quantity and the equilibrium price. ... Also, find the equilibrium quantity and the equilibrium price. Supply (blue). Demand (red). ...

Finding Equilibrium Price & Quantity, Elasticities. ...Equilibrium point is the price at which Qd=Qs We find the equilibrium point at P=1.9 where Qd=Qs=100. ...

Finding Equilibrium Constant and Delta G. ... This solution is comprised of answers related with Finding equilibrium constant and delta G. Answers: Part A. ...

... effect of an increase in the money supply, assumed to be determined solely by the Fed, on the supply and demand for loanable funds and the equilibrium rate of ...

... b. Find each player's dominant strategy, if it exists. c. Find the Nash equilibrium (or equilibria) of this game. ... c) Find the Nash equilibrium of the game. ...

... We can find Cournot equilibrium quantities by solving (1) & (2). Its clear that q2 =q2, So, q2 =225 -0.5 q2 Or q2 = 150 Therefore, q1 = 150 P = 500 -150 -150 ...