Homework Help Question & Answers

Consider the following model of a closed macroeconomy, The Labour Market Y 63.246N -N2/12 N 63.24...

Consider the following model of a closed macroeconomy, The Labour Market Y 63.246N -N2/12 N 63.246-WIP N. = 0.4142W / P (1) (4. a) (10 marks) Given the fixed nominal wage imposed in Question 2, suppose the government decided to choose a value of G th

Consider the following model of a closed macroeconomy, The Labour Market Y 63.246N -N2/12 N 63.246-WIP N. = 0.4142W / P (1) (2) (3) (4) Production function Labour demand Labour supply Labour market equilibrium The Goods Market C= 110 +0.75% ) (5) (6) (7) (8) (9) (10) Consumption function Investment function Government expenditure Disposable income Tax function Goods market equilibrium I 10 + 0.2 Y _ 200i G 200 T -333.333 Y=C+I+G The Money Market L = 1 00 + 0.2 Y-200i (11) (12) (13) Money demand Money supply Money market equilibrium MIP 300/ P
4. a) (10 marks) Given the fixed nominal wage imposed in Question 2, suppose the government decided to choose a value of G that would bring the economy back to full employment. What, if any, value of G would achieve this target? Fixed nominal wage: W - 50 b) (5 marks) What values of Y, P, i, N, N,, I, WIP and would this imply? c) (10 marks) Illustrate the effects of this fiscal policy on this economy, in a diagram that includes the labour market, the production function, aggregate demand and aggregate supply, and IS and LM. Explain briefly.
0 0
ReportAnswer #1

WIP MRP A S IS 0dabor Marke NA 110 0-7ゾ 249.999 + 210 -0.LY - 200し 2 D0 0 0.2 3D D ー30, D / 1-1, 术 959 13 3 (a) 2ID 220 2% 1.91 0i 200 v 20、レPAGE PL 11 ㅡㅡㅡebl Multiplier 1、

Add Homework Help Answer
Add Answer of:
Consider the following model of a closed macroeconomy, The Labour Market Y 63.246N -N2/12 N 63.24...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
More Homework Help Questions Additional questions in this topic.
Need Online Homework Help?
Ask a Question
Get FREE EXPERT Answers
WITHIN MINUTES
Related Questions