MGEC61H3 Lecture Notes - Money Supply, Autonomous Consumption, Hungarian Socialist Party

50 views2 pages

Document Summary

Chapter 17 output and the exchange rate in the short run. Question 1: problems #2. (short run analysis only) Question 3: problems #8 (short run analysis only) A tax break will increase output and deteriorate the current account in the short run. Keep your answer to 4 decimal points: this economy has 64000 units of capital and 1000 workers. In addition, the level of (nominal) money supply is 26250 while the level of government spending is 10% of the country"s long-run level of output. Dc/fc exchange rate if the expected value of dc (ee) is 28 dc per fc: the economy has a flexible exchange rate system and is initially in its long-run equilibrium as shown in part (a). Now, suppose there is a fall in (autonomous) consumption such that the dd curve becomes: Y = 26400 + g 800p + 500e. In addition, the market believes this fall in consumption will have a permanent impact on the economy.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions