HW #2

Due: 9/2/2017 at 12 noon. Late assignments docked 10% per 24 hour period. For example, assignments submitted after 12 noon on Thursday are worth, at most 9 points, after 12 noon on Friday, 8 points etc.

Assume the following set of numbers.

Ca = 50

Cy = 0.75

Ip = 300

G = 400

T = 200 + 0.2Y

X = 400

M = 300

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1. What is the value of Equilibrium Y in this model?

2. At Equilibrium what is the value of C?

3. At equilibrium what is the value of S?

4. At equilibrium what is the value of the budget balance?

10 points total value - 2.5 points each.