# Homework 04_Answers.pdf - Homework 04 Due Oct 16 at 1:59am...

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Homework 04DueOct 16 at 1:59amPoints100Questions60Availableuntil Oct 16 at 1:59amTime LimitNoneInstruc±onsThis quiz was locked Oct 16 at 1:59am.A±empt HistoryAttemptTimeScoreLATESTAttempt 1 572 minutes66 out of 100Score for this quiz: 66out of 100Submitted Oct 15 at 11:13pmThis attempt took 572 minutes.Homework 04Lessons 06 and 07100 pointsThis homework is composed of multiple choice, fill-in-the-blank and true/false questions. Select or enter your responses for each question.There is no time limit.It will be available for review starting the day after the assignment is due.3 / 3 ptsQuestion 1Part 1: AE Problem (11 questions worth 3 points each for a total of 33 points).FOR FILL-IN-THE-BLANK questions:If your answer is in decimal form, round to 2 decimal places.For example, if your answer is .412, enter it into the fill-in-the-blank as .41, or if your answer is 1.415,enter it into the fill-in-the-blank as 1.42. If there are no decimals in your answer, you will simply enterthe number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do notenter commas or \$ or % symbols.Suppose the initial conditions of the economy are characterized by the following equations in blackfont. We then shock the economy as shown in the red font.1) C = a+ a(Y-T) + a(WSM) + a(WRE) + a(CC) + a(r) 1’) C = a+ a(Y-200) + a(10,000) + a(15,000) + a(120) + a(4) 1’') C = a+ a(Y-200) + a(12,000) + a(15,000) + a(160) + a(4) 2) I = b+ bAS + bCF + b(r) 2’) I = b+ b(140) + b(1500) + b(4) 2’) I = b+ b(180) + b(2000) + b(4) 0123450123 45012345012301230123
Answer 2:3) G = G 3’) G = 200 4) X-M = X-M 4’) X-M = -200 4’) X-M = -400 5) AE = C + I + G + X-M Where: a= 50, a= .60, a= .05, a= .10, a= .5, a= -400, b= 100, b= .5, b= .2, b= -50Use the initial conditions above to get expressions for the Consumption function, Investmentand the AE equation.Fill in the intercept and slope values to correctly complete the consumption function: C = 390+ 0.60123450123Y
Correct!0.6Correct!.6 Correct Answer0.60 Correct Answer.60 Correct Answer0 / 3 ptsQuestion 2What is the value of Investment: I = ________220You AnsweredCorrect Answers270 1.5 / 3 ptsQuestion 3Fill in the intercept and slope values to correctly complete the AE equation: AE = 610+ 0.6Y
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