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Country X can produce either 120 units of wine or 240 units of cloth per day. Country Y can produce either 60 units of wine or 120 units of cloth per day. Which is true?

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Assume government expenditure increases to 0.4Y. What is the new equilibrium output?

In an open economy with flexible exchange rates, a contractionary monetary policy will, ceteris paribus:

Suppose two countries are identical in every respect except that Country X has a savings rate s=0.27 and Country Y has a savings rate s=0.03. In a constant-returns-to-scale Cobb-Douglas model with α=0.5, what is the ratio of the steady-state capital-output ratio in Country X relative to Country Y?

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Solve for the equilibrium interest rate r (in % term).

According to Krugman’s perspective on healthcare, which policy approach aligns most closely with his arguments?

Consider a closed-economy with taxes proportional to income.Consumption: C=1000+0.8Yd, where Yd is the disposal income​, the difference between GDP and TaxesInvestment: I=2000-100r Government spending: G = 0.2Y, where Y is the GDP Taxes: T= 0.25Y Money demand: L=0.25Y−500r, where r is in % term  Real money supply: M/P=1250 Assume government expenditure increases by 1000. What is the resulting change in output (Y) due to the shift of the IS curve?

Consider a Solow model with constant return to scales Cobb-Douglas production and the following parameters to answer the following question. Capital share (α) = 0.4 Savings rate (s) = 0.2 Depreciation rate (δ) = 0.05 Population growth (n) = 0.01 Technology growth (g) = 0.03 What is the value of capital-output ratio if capital growth rate decreases to 0?

Consider the Romer model. Y = (A LY)1-αKα with α=0.25, L=1000, LY=0.75L. =0.3 (0.25L)0.2A0.5 and = 0.4Y – 0.006K. In the steady state, the growth rate of labor is 1%.  What is the steady-state value of output per worker?

Using the Taylor Rule. Suppose the real equilibrium interest rate is 2%, actual inflation is -2%, target inflation is 2%, and the output gap is 0.5%. What is the nominal interest rate?