Consider the following economy with: Y = 220 N-2N^2, MPN = 220-4N, NS = 8.75 w+0.2T, where T-50 is lump-sum tax. The government maintains a balanced budget such that T-G for all economies. C^d = 0.4 Y- 1000r-0.4 T, I^d=3613.125-500r, M^d=P*(0.4 Y-2000 i), M=9275, expected inflation rate=0.04. What is the full-employment level of output? O less than or equal to 6000 O greater than 6000 and less than or equal to 6100 O greater than 6100 and less than or equal to 6200 O greater than 6200 and less than or equal to 6300 Ogreater than 6300 QUESTION 22 Consider the following economy with: Y = 220 N-2N^2, MPN = 220-4N, NS 8.75 w+0.2T, where T =50 is lump-sum tax. The government maintains a balanced budget such that T-G for all economies. C^d = 0.4 Y- 1000r-0.4 T, I^d=3613.125-500r, M^d-P^(0.4 Y- 2000 i), M=9275, expected inflation rate=0.04. What is the real interest rate that clears the goods market? O less than or equal to 0.01 O greater than 0.01 and less than or equal to 0.02 O greater than 0.02 and less than or equal to 0.03 O greater than 0.03 and less than or equal to 0.04 O greater than 0.04

Consider the following economy with: Y = 220 N-2N^2, MPN = 220-4N, NS = 8.75 w+0.2T, where T-50 is lump-sum tax. The government maintains a balanced budget such that T-G for all economies. C^d = 0.4 Y- 1000r-0.4 T, I^d=3613.125-500r, M^d=P*(0.4 Y-2000 i), M=9275, expected inflation rate=0.04. What is the full-employment level of output? O less than or equal to 6000 O greater than 6000 and less than or equal to 6100 O greater than 6100 and less than or equal to 6200 O greater than 6200 and less than or equal to 6300 Ogreater than 6300 QUESTION 22 Consider the following economy with: Y = 220 N-2N^2, MPN = 220-4N, NS 8.75 w+0.2T, where T =50 is lump-sum tax. The government maintains a balanced budget such that T-G for all economies. C^d = 0.4 Y- 1000r-0.4 T, I^d=3613.125-500r, M^d-P^(0.4 Y- 2000 i), M=9275, expected inflation rate=0.04. What is the real interest rate that clears the goods market? O less than or equal to 0.01 O greater than 0.01 and less than or equal to 0.02 O greater than 0.02 and less than or equal to 0.03 O greater than 0.03 and less than or equal to 0.04 O greater than 0.04

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 1DQ

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