Consider the following macroeconomic model: Y=C+ Io + Go C=a+b(Y-T) T=d+tY Where the endogenous variables are Y,C and T, while the exogenous variables are G, and I. The parameters are such that a>0,d > 0,0
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- (c) Consider the following macroeconomic model Y = C + 1 + Go C = 40 + 0.8Y I = 0.1Y How many degrees of freedom does the system have? Given that Go is exogenous government expenditure, find the equilibrium solutions for Y, C and I. b(i) hand written plz (ii)A closed economy which is shown below, endogenous variables are Y, I, C, i and exogenous variables are Go and Mo and parameters are a,b,t,d,e, k. Y= C+l+G C= a+ b(1-t)Y |= d-ei G= Go Md= Ms Ma= ky-li Ms=Mo Calculate the equlibrium level of I by using inverse matrix rule.1- Equilibrium-defining equations in an IS-LM model are presented as follows: Y=C+I+G, C = C₁ + f(Y) = g(r), I = 1o — h(r), G = Go, and Mo = 3Y - i(r) where Co, Io, Go, Mo> 0 are exogenous variables, and f, g, h, i are continuously differentiable wwwwww and strictly increasing functions satisfying: Y = C₁ + f(Y) = g(r*) + Io − h(r) + Go Mo 3Yi(*). = for the unique equilibrium (rª,Y*). You should also assume that f' (Y) = (0, 1) (Why?). Find dr*/d Mo and dy* /d Go, and interpret your results.
- Question 19 Lot's say you run a simulation and figure out that your sample bs one of the likely sampies that could have come from a DGP of 0. What would that mean? • A That is a good sign. Our model is good and probably explains a lot of variation. • B This is a bad sign for our model because a DGP of 0 means there is no relationship between the explanatory and outcome variable. • C This does not mean anything for our model. We have to run supernova to find out about how good our model is. • Dit depends on what our b Type Markdown and LaTeX: a Question 20 14 MacBook ProWhat is inter-temporal efficency and what are the equilibrium conditions for how resources are optimally used over multiple time period?Using sound economic theory, develop a macroeconomic econometric model that would test the relationshipbetween globalisation and economic development in South Africa. You are to state the a priori expectations ofwhat the model would tell us, and you are to write the model using ‘Word Equation’. Finally, each variable that isincluded must be justified regarding its relevance for being there.
- Sally wants to take out her entire savings from her superannuation to spend today. Is this acting in a time inconsistent manner (according to behavioural economics)? a) Yes b) No Explain:D2) Economics In the R program, with what code is the vector outoregressive model found? (for daily return)Consider the two-sector macroeconomic model of a fictitious country: dy dt C = 0.5 Y + 540 I = 425 Where C = consumption; I = investment and Y = national income. = 0.034(C+I - 0.6 Y) Determine the following: (a) If Y(0) = 14,000, find an expression for Y (t) by solving the differential equation. (b) Find the time taken for income to fall to 13,000. (c) Is the system stable or unstable? Explain your answer.
- 1. Given the following model: Y = C + to + Go C = a + b(Y – T) T = d+ tY (a) How many endogenous variables are there? (b) Find Y", T*, and C*. (a > 0, 0 0, 0Consider the model of a firm that produces final goods using R&D and components as inputs, with cost dataas follows:Assembly: Total cost of production = PAQA = 400Earnings of High-Skilled Labor = WHHA = 100Earnings of Low-Skilled Labor = WLLA = 200Earnings of Capital = RKA = 100R&D: Total cost of production = PRQR = 400Earnings of High-Skilled Labor = WHHR = 175Earnings of Low-Skilled Labor = WLLR = 125Earnings of Capital = RKR = 100A) In which factor(s) is assembly intensive? In which factor(s) is R&D intensive?B) Suppose that due to the opening of trade, the price of assembly falls by ∆PAPA= −20%, the price of R&Dremains unchanged, ∆PRPR= 0%, and capital’s share earnings remains constant.C) What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?Anation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms: Yards of Carpet (Millions) Carpet Looms (Thousands) 75 60 20 45 35 30 45 15 50 50 These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. To answer this question, assume carpet looms is on the y-axis and yards of carpet is on the x-ais The plot of these points that make up the PPF has a vertical intercept of and a horizontal intercept of This PPF would be (Enter your responses as a wvhole number) bowed out a straight lineSEE MORE QUESTIONS