simple economy--------- no govt and no foreign sector involved.

hence GPD=NI=PI=DI=C+I

GDP=300
C=260
Planned invvestment=50
Unplanned=-10
Marginal Propensity to Consume(MPC)=0.5

WHta is the equlibrium level of GDP???
any help will be greatly appreciated..:)

Bro seems like your equation is incomplete.

GDP = Consumption + Investment + Government Expenses + Net Export ( Net Export - Net Import)

but you just have GDP = C + I , I am quite not sure about that.

If anyone taking Econometrics and needs good Econometrics research paper for your final, holla at me. I did a research on Determinants of Traffic Mortality Rate in U.S in Cross Section data for 2004 for my final. I will hand it to you.

:).. hey nas your idea sounds great.
...mailing address kahile deu?? ;)
and about my equation... i'm talking about a economy without any foreign sector and government..
helpppppppppp
i cant beleive i'm stuck yeti sano prob ma :(

LOL. Change your major ;)

I "think" Y = C+I should set you for equlibrium level of GDP without govt. role and foreign trade.

You have the numbers, just pluck it in.

IndisGuise:)

I "think" you should discard unplanned investment though, because in equilibrium, I = actual investment.

aww man...
now this is not working??
indis---------- pllug in the numbers where??? Y=C+I tara at a point where AE=Y .. tara tyo kun point ho tyo paata lagauna khojira

and MS.. equilibrium ma there is no unplanned sabai investment is planned.. now how is that knowledge going to helpo me find out the "equilibrium GDP????
my head is spinning...

thankx for you helppp

some more will be greatl appreciated
:)

I'd do:

Equib. GDP = mpc * C + Planned investment
=0.5* 260 + 50
=180

That GDP=300 thing you have, what is that? Potential GDP?

If I get this wrong, I really need to go back and refresh my macroeconomics.

see now
the current GDP=300
Aggregate Exp=310
MPC=0.5
Planned Investment=50
Unplannned=-10
Saving=40

now in this economy, kun piont ma GDP is at the equilibrium??? it is more than 300 for sure because at that point umplanned is -10, at equlibrium unplanned should be 0..
tara equlibrium point kata huncha??
OMG.. i've never been stuck like this before..
HAAEELLPPP

Y = C + I

Y = (.5) Y + 260 + 50

Therefore the equilibrium level of GDP in economy without govt. role and foreign trade is -------> 620.

La malai choto mitho ako yehi ho ahile lai.

Caveat: You may want to verify the answer. It's been many years since I even had a look at these, thus proof-check the solution or use this on your parole.

Also,
Iamme, the way you ask question is very confusing. Question ko layout ramro sanga gara.

Jai Nepal,
IndisGuise:)

iamme bro ..you could give it anytime you wish :)

Y = C+I+G+X-IM
Since there is no government and international sector,
G=o, X=0, and IM=0

Now,
Y = C+I
Y= a+bY+I
where autonomous consumption=0,
Y-bY = I
Y(1-b) = I

b=change in consumption/change in income =0.5

Therefore equilibrium income = I/1-b =50/1-0.5 =100.

iamme,
Do your own ass ignment.

U_day bro,

nice ploy man..u trying to score some chick by doing her assignment.Hope sajhabasis won't let u down.

Goodluck bro.

iamme ji -
As far as I know, there is no such thing as equilibrium level of GDP. GDP is just an accounting identity (C+I+G+NX). If you meant “potential GDP” when you say “equilibrium GDP” then we don’t have enough information to do the calculation (we need productivity figure).

If your question is given unplanned investment of -10, what would be the GDP next period (quarter or year), then again we don’t have enough information to do the calculation. It depends on next period’s consumption and planned investment.

I am not sure where you are coming from. In econ-speak “unplanned investment” is usually unexpected inventory buildup (because sales were weaker than forecasted). Inventory cycles are a big drivers of economic i.e. GDP cycles. Incidentally, Chairman Greenspan was one of the first people to discover it way back in the 1970s.

thankxxx wit. mas. indi. mp. clair. uday.f22.gaule. :)
clair.. i was looking to findout the equilibrium level of GDP ( not income) can u pluzz help?

C = 260 + 0.5Y
Ip = 50
Step (1): multiplier = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

Step (2): total autonomous spending = Cautonomous + Ip + G + EX - IM

= 260+ 50+ 0 + 0
= 200
Step (3): Yequil. = 2* 310 = 620

:o) looks right to a lay person like me.

Ghumdai firdai rumjhaltar, bhanya jasto.

Equilibrium level of GDP is 620.

In an economy without govt. role and foreign trade, we do not need to beat around the bush. Pluck the value of C and I, and they you'll gey Y. Voila!

-> MPC is given.
-> Change is Y & Change in I is NOT in the question and hence why go there?
-> C and I is given.

And you do not need to worry about govt. tax and foreign trade, thus the formula including those facets are nonessential here.

Based on the requirement that desired expenditure equals output (C+I = Y) with a touch of basic algebra, the equilibrium level of GDP can be calculated.

For your convenience, the value of C is also plucked in, which includes the MPC (change in consumption/change in income ). I have posted it in two lines above in my last post. Now what part of the solution do you not understand?

Yeso hernu paryo kaji!

IndisGuise:s

Disclaimer: Maile bujeko jatti bhaneko ho. Galti bhaye ma jimmebaar chuina. ;)

Thank you very very very very much wits' end and insidgiuse for everything :)
you guys rock!!!!!!!!

You should tell your professor where exactly you got the answer from! atleast you will deserve the F you get!

bhaneko matlab?? k ho/

so Iamme jiu...was the answers even close?