Raphael Cabuslay

Y = C + I + G
C = C1 + C2
C1 0.8Yd
C2 2600-100r
T 3000
G 1800
I 2000-100r
NX 0
r 10 r is 8 . Lower by 2%
A.
Y = (0.8*Y-3000) + 2600-(100*10) + 2000-(1000*10) + 1800
Y= 0.8y - 2400 + 1600 - 8000 + 1800
#### / -.8
8750
DISPOSABLE
Y C1 C2 C I G AE Equilibrium
A #### 5600 1600 7200 1000 1800 #### 0
B #### #### 2000 #### 1400 1800 #### 400
i 8%
ii ####
iii ####
iv ####
v 600
vi 1400
vii 1200
viii ??
c1 0.5Yd
c2 14400-400r
t 8000
G 7600
R 7
Y C1 C2 C I G AE Equi?
#### #### #### #### 6600 7600 #### 0
X = Exports of goods and services
M = Imports of goods and services
NY = Net income abroad
NCT = Net current transfers
CAB = X - M + NY + NCT
1 A Y = 10000
B
I 0.08
II 16000
III 10400
IV 12400
V 600
VI 1400
VII 1200
VIII -
C Interest rates affect GDP andis easily controllable through monetary policy.
R decreased = I, Ad, P, GDP increase. R increase = I, Ad, P,GDP decrease
2 d 6%
e increase to 7%
f Fiscal Expansionary = + G, + Ad, + P, + Gdp and Monetary contractionary = - R, -I, -Ad,- P, -GDP.
Final effect = Increase in G, decrease in R, decrease in I
g Investments decreased - 6800 to 6600
Interest rate increased - 6% to 7%
1 A Y = 10000
B
I 0.08
II 16000
III 10400
IV 12400
V 600
VI 1400
VII 1200
VIII -
C Interest rates affect GDP andis easily controllable through monetary policy.
R decreased = I, Ad, P, GDP increase. R increase = I, Ad, P,GDP decrease
2 d 6%
e increase to 7%
f Fiscal Expansionary = + G, + Ad, + P, + Gdp and Monetary contractionary = - R, -I, -Ad,- P, -GDP.
Final effect = Increase in G, decrease in R, decrease in I
g Investments decreased - 6800 to 6600
Interest rate increased - 6% to 7%
1 A Y = 10000
B
I 0.08
II 16000
III 10400
IV 12400
V 600
VI 1400
VII 1200
VIII -
C Interest rates affect GDP andis easily controllable through monetary policy.
R decreased = I, Ad, P, GDP increase. R increase = I, Ad, P,GDP decrease
2 d 6%
e increase to 7%
f Fiscal Expansionary = + G, + Ad, + P, + Gdp and Monetary contractionary = - R, -I, -Ad,- P, -GDP.
Final effect = Increase in G, decrease in R, decrease in I
g Investments decreased - 6800 to 6600
Interest rate increased - 6% to 7%
Interest rates affect GDP andis easily controllable through monetary policy.
Fiscal Expansionary = + G, + Ad, + P, + Gdp and Monetary contractionary = - R, -I, -Ad,- P, -GDP.