ECON 104_HomeWork04_2019_edited.pdf - Question 1 3 3 pts Part 1 AE Problem(11 questions worth 3 points each for a total of 33 points FOR

# ECON 104_HomeWork04_2019_edited.pdf - Question 1 3 3 pts...

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Question 13 / 3 ptsPart 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 enter the number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do not enter commas or \$ or % symbols. Suppose the initial conditions of the economy are characterized by the following equations in black font. We then shock the economy as shown in the red font1) C = a0+ a1(Y-T) + a2(WSM) + a3(WRE) + a4(CC) + a5(r) 1’) C = a0+ a1(Y-200) + a2(10,000) + a3 (15,000) + a4(120) + a5(3) 1’') C = a0+ a1(Y-200) + a2(12,000) + a3(15,000) + a4(160) + a5(3) 2) I = b0+ b1AS + b2CF + b3(r) 2’) I = b0+ b1(140) + b2(1500) + b3(3) 2’) I = b0+ b1(180) + b2(2000) + b3(3) 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: a0= 50, a1= .80, a2= .05, a3= .10, a4= .5, a5= -400, b0= 100, b1= .5, b2= .2, b3= -50Use the initial conditions above to get expressions for the Consumption function, Investment and the AE equation.Fill in the intercept and slope values to correctly complete the consumption function: C = + Y . Question 23 / 3 ptsWhat is the value of Investment: I = _320_______
Question 33 / 3 ptsFill in the intercept and slope values to correctly complete the AE equation: AE = + Y Question 43 / 3 ptsThe value of equilibrium output (Y) = 5350 IncorrectQuestion 50 / 3 ptsThe value of equilibrium consumption (C) = Question 63 / 3 ptsWe now incur shocks to the economy as provided above in the red font. Use these new conditions to get expressions for the Consumption function, Investment and the AE equation.Fill in the intercept and slope values to correctly complete the new consumption function: C = + Y Question 73 / 3 ptsWhat is the newvalue of Investment: I = 440 Question 83 / 3 ptsFill in the intercept and slope values to correctly complete the newAE equation: AE = + Y Question 93 / 3 ptsThe newvalue of equilibrium output (Y) = 5550 IncorrectQuestion 10
0 / 3 pts The new value of equilibrium consumption (C) = Got wrong NOTE: There is no graphing component to be collected for this homework. However, you should be comfortable creating two separate graphs from the above questions in part 1. You should be able to: 1. Graph the consumption function both before and after the shock on one graph, and also plot equilibrium consumption and output values both before and after the shock. 2. Graph the AE equation both before and after the shock on one graph, and also plot equilibrium output Y both before and after the shock.