T. Haavelmo devised a model of the US economy for the years 1929–1941 based on the following equations: (i) c = 0.712y + 95.05 (ii) s = 0.158(c + x) − 34.30 (iii) y = c + x − s (iv) x = 93.53 Here x denotes total investment, y is disposable income, s is the total saving by firms, and c is total consumption. Write the system of equations in the form (1) when the variables appear in the order x, y, s, and c. Then find the solution of the system.
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T. Haavelmo devised a model of the US economy for the years 1929–1941 based on the following
equations:
(i) c = 0.712y + 95.05 (ii) s = 0.158(c + x) − 34.30
(iii) y = c + x − s (iv) x = 93.53
Here x denotes total investment, y is disposable income, s is the total saving by firms, and c is
total consumption. Write the system of equations in the form (1) when the variables appear in
the order x, y, s, and c. Then find the solution of the system.
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- The equation S = I + NCO describes the savings market for an entire national economy engaged in foreign trade. Between the variables I and NCO, which represents the amount of national savings utilized in the domestic economy and in foreign markets? How do you know?Assume that the average or mean monthly household consumption expenditure for Malaysia rose from RM3,578 in 2018 to RM4,033 in 2020, growing 6% per annum at nominal value, according to the statistics department. However, in terms of real value — which refers to the constant price using the Consumer Price Index with the base year 2014 as the deflator — annual growth rate is 3.9% for the same period, mentioned on its Household Expenditure Survey Report 2020. a) Suppose that consumer spending initially rises by RM5 billion for every 1 percent rise in household wealth and that investment spending initially rises by RM20 billion for every 1 percentage point fall in the real interest rate. Also, assume that the economy’s multiplier is 4. i. If household wealth falls by 5 percent because of declining house values, and the real interest rate falls by two percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? ii. In what…In 1928, Charles Cobb and Paul Douglas published a study in which they modeled the growth of the US economy during the period 1899 to 1922. The function used to model production was of the form: (1) P(L, K) = 6LªK!-a where P is total production (monetary value of goods produced in the year); L, the amount of work (total number of person-hours worked in a year); and K, the amount of capital invested (monetary value of machinery, equipment and buildings). In these terms, the hypotheses made by Cobb and Douglas can be stated as follows: (i) If either labor or capital cancel each other out, so does production. (ii) The marginal productivity of labor is proportional to the amount of output per unit of work. (iii) The marginal productivity of capital is proportional to the amount of production per unit of сapital. 1. The output per unit of work is (a) Tick the alternative that, for some constant a, describes the hypothesis (ii) = aP·L. = a. P () aL L P = a. (b) If we keep K constant, K = K0,…
- Calculate business investment for the following data: Y = 55,000 C = 40,000 G= 5,000 NX= - 2000 A.) Investment is $9,800 B.) Investment is 12,000 C.) Investment is 3600 D.) Investment is 1,200Next, consider an economy with these equations: C = 2060 + 0.85Yd, | = 1420, G = 1220 - 0.02Y, X = 1480, M = 1525, and T = -1198 + 0.17YGeorge Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this year: Resin Productivity Change if necessary). The productivity change for each of the inputs (Labor, Resin, Capital, and Energy) is: Labor Productivity Change = if necessary). = Units Produced Labor (hours) Resin (pounds) Capital Invested ($) Energy (BTU) Last Year 1,200 300 60 10,000 2,900 Energy Productivity Change = if necessary). Now 1,200 250 46 11,000 2,750 % (enter your response as a percentage rounded to two decimal places and include a minus sign % (enter your response as a percentage rounded to two decimal places and include a minus sign Capital Invested…
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- Colton is trying to figure out when two buses traveling at different speeds will pass one another. The buses are traveling in the same direction and begin 3 miles apart. He has defined variable tt as follows: Let tt represent the time in hours. Is this a good variable definition? YES OR NO ? IF NO than explain why?The question states: the movement from point C to point D was most likely caused by... The developing economies' share of the global gross domestic product (GDP) from 2003 to 2017 is shown in the following table. Year Share(% of GDP) Year Share(% of GDP) 2003 20 2011 35 2004 22 2012 38 2005 23 2013 39 2006 27 2014 40 2007 28 2015 41 2008 31 2016 42 2009 31 2017 43 2010 33 (a) Find the quadratic function that best models the developing economies' share of the global GDP as a function of the number of years after 2000. (Round all numerical values to four decimal places.)y(x) = (b) Use technology to find the maximum share of GDP that the developing economies can achieve, according to this model. (Round your answer to one decimal place.) The model predicts that in the year ---Select--- 2005 2010 2017 2027 2030 , developing economies reach their maximum share, %, of the GDP.