a couple of questions. (1 Viewer)

[waterbottle]

there are probably easy and i'm just dumb, but anyway!

what is the equilibrium level of income if C = 100 + 0.8Y and I = 40?

a) 100
b) 140
c) 500
d) 700

also; i remember somebody telling me that terms of trade are specifically related to volume or price. but i can't remember which it is. but i know it's one and not the other - can somebody tell me which one it is please thanks.

thanks all, good luck tomorrow.

 

[Kabeio]

there are probably easy and i'm just dumb, but anyway!

what is the equilibrium level of income if C = 100 + 0.8Y and I = 40?

a) 100
b) 140
c) 500
d) 700

also; i remember somebody telling me that terms of trade are specifically related to volume or price. but i can't remember which it is. but i know it's one and not the other - can somebody tell me which one it is please thanks.

thanks all, good luck tomorrow.

140 / 0.2

= 700

Terms of trade is price

 

[Jago]

d.

price.

 

[waterbottle]

could you please explain how you got the first one? i have never seen anything like that before.

 

[Jago]

Y = C + I
Y = 100 + .8Y + 40

.2y = 140
y = 700

 

[yabby]

Y = C + I
since we know what C is, sub it in
Y = (100 + 0.8Y) + I
Y = 140 +0.8Y
0.2Y = 140
Y = 700

 

[word.]

haven't ever seen this question before ...
cept here http://community.boredofstudies.org/showthread.php?t=28141

and
http://community.boredofstudies.org/showthread.php?t=30433

http://community.boredofstudies.org/showthread.php?t=36937

http://community.boredofstudies.org/showthread.php?t=43177

http://community.boredofstudies.org/showthread.php?t=46395

http://community.boredofstudies.org/showthread.php?t=79413

http://community.boredofstudies.org/showthread.php?t=83597

http://community.boredofstudies.org/showthread.php?t=86151

http://community.boredofstudies.org/showthread.php?t=86857

http://community.boredofstudies.org/showthread.php?t=92674

 

[waterbottle]

where did .2y come from ?!

 

[invisible_entit]

Y = C + I
sub in C = 100 + 0.8Y and I = 40
Y = 100 + 0.8Y + 40
0.2Y = 140
Y = 140/0.2
Y = 700

 

[waterbottle]

haven't ever seen this question before ...
cept here http://community.boredofstudies.org/showthread.php?t=28141

and
http://community.boredofstudies.org/showthread.php?t=30433

http://community.boredofstudies.org/showthread.php?t=36937

http://community.boredofstudies.org/showthread.php?t=43177

http://community.boredofstudies.org/showthread.php?t=46395

http://community.boredofstudies.org/showthread.php?t=79413

http://community.boredofstudies.org/showthread.php?t=83597

http://community.boredofstudies.org/showthread.php?t=86151

http://community.boredofstudies.org/showthread.php?t=86857

http://community.boredofstudies.org/showthread.php?t=92674

yeah sorry i'm too lazy to search.

 

[Jago]

Y = 100 + .8Y + 40

1y - 0.8y = 140

 

[waterbottle]

oh my god i'm an idiot. thank you! <3

 

[invisible_entit]

Since we have Y = 100 + 0.8Y + 40 its just solving for Y
Minus 0.8Y from both sides... Y - 0.8Y = 100 + 0.8Y - 0.8Y + 40
But if you can't do that, God help you - its year 9 level