Y= C+I +G +XC= 220 + 0.63

Y= C+I +G +XC= 220 + 0.63

Y= C+I +G +XC= 220 + 0.63YI= 400 ? 2000R + 0.1YM=(0.1583Y ? 1,000R)PX= 600 ? 0.1Y ? 100 EP/PwEP/Pw = 0.75 + 5RG=1,200 and the money supply M=900. Suppose that the ROW price level Pw is always =1.0 and the US price level is predetermined at 1.0A)Which variables are endogenous and which ones are exogenousFind the values of Y,R, C, I, X and E predicted by the modelWhat is the algebraic expression for the aggregate demand curve in which M ,G and Price level explicitly appear. For M =900 ,G =1200 draw the aggregate demand curve accurately to scaleD)Keeping the Price level P at 1.0, calculate the effect a decrease in government spending of 10 billion has on output, the interest rate, consumption , investment ,net exports and the exchange rate. Do the same thing for an increase in the money supply of $20 billion

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