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1. Household budget constraint (M_(t-1)+B_(t-1)+W_t N_t)/P_t =C_t+(B_t/i_t+M_t)/P_t 2. N_t^ϕ C_t^σ=W_t/P_t 3. C_t^(-σ)=β〖i_t E〗_0 [C_(t+1)^(-σ) P_t/P_(t+1) ] 4. (M_t^(-δ))/(P_t^(-δ) )=C_t^(-σ)-βE_0 [C_(t+1)^(-σ) P_t/P_(t+1) ] 5. ψ_t=W_t/((1-α) 〖N_t〗^(-α) ) 6. aggregate price P_t=〖(θP_(t-1)^(1-ε)+(1-θ) P_t^(*1-ε))〗^(1/(1-ε)) 7.aggregate output conjectured Y_t=ΓY_t^* 8. market clearance C_t=Y_t 9. money supply rule M_t=M ̅+v_t. Provide for each parameter of the model (α,β,σ,δ,ϕ,ε,M ̅,θ,Γ) a calibration value. Justify your choices either by using references from the literature, or data for a country of your choice. Explain briefly what each parameter means.

Answer: Household Budget Constraint The household budget constraint is an economic model that describes the relationship between income, consumption, and wealth. The model is represented by the equation M_(t-1)+B_(t-1)+W_t N_t/P_t =C_t+(B_t/i_t+M_t)/P_t, where M_(t-1) is the money supply in the period

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Collect (1) the household budget constraint, (2) the three expressions found in 1., (3) the marginal cost found in 2. (where you can loosely drop the j indices), (4) the aggregate price found in 3., (5), the aggregate output conjectured in 4., (6) the market clearing condition for goods and output, and (7) the money supply rule. These amount to 9 equations for 9 endogenous variables (Ct, Nt, Mt, Bt, Yt, it, Wt, ψt, Pt). Provide for each parameter of the model (α,β,σ,δ,ϕ,ε,M ̅,θ,Γ) a calibration value. Justify your choices either by using references from the literature, or data for a country of your choice. Explain briefly what each parameter means.

Answer: Household Budget Constraint The household budget constraint is an equation that shows how much income households have to spend on consumption and savings. It is expressed as the sum of the households’ disposable income, Yt, minus their total consumption,

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Households The representative household maximizes the following expected utility: max Ct;Nt;Mt;Bt E0 X1 t=0 t ” U  Ct; Mt Pt  􀀀 N1+ t 1 +  # where Ct is the CES aggregator of the different goods consumed with elasticity “, Ct = Z 1 0  Ct(j) “􀀀1 ” dj  ” “􀀀1 Pt = Z 1 0 􀀀 Pt(j)1􀀀”dj  1 1􀀀” and Pt(j) is the price of good j. The representative household supplies Nt hours of work and holds Mt=Pt real balances. As usual, the parameter 2 (0; 1) is a discount factor and   0 is the (inverse) Frisch labour supply elasticity. Macro MScE, F-23 Long exercise 2 Page 1 We will focus our analysis on the particular case of CRRA utility function U  Ct; Mt Pt  =  1 1 􀀀   C1􀀀 t + 1 1 􀀀   Mt Pt 1􀀀 where  and  are elasticities. Households start each period with bonds Bt and money Mt. They receive nominal labor income WtNt. Some of these funds are used to buy bonds at nominal cost Bt=it, it being the gross nominal interest rate from t to t+1. The remaining funds are carried into the next period in the form of money Mt. Their budget constraint therefore is: Mt􀀀1 + Bt􀀀1 +WtNt Pt = Ct + Bt=it +Mt Pt : Firms Firm j hires Nt(j) hours from the household and produces output Yt(j) according to the following technology: Yt(j) = Nt(j)1􀀀 where (1 􀀀 ) is the income-elasticity of labor. Let Yt = Z 1 0  Yt(j) “􀀀1 ” dj  ” “􀀀1 so that Ct = Yt obtains by market clearing. In each period, firms reset their price with probability (1 􀀀 ), no matter how long they have kept they price fixed in the past. Firm that do not reset their price keep their previous price Pt􀀀1(j). As we have shown in class, when firms can, they set their price to P t (j) =   􀀀 1 t where t  MCt(j) is the marginal cost of firm j. Monetary Authority We are going to assume that the central bank sets the money supply according to Mt = M + vt where M is the expected component of monetary policy and vt is a zero-mean i.i.d. monetary policy shock. Macro MScE, F-23 Long exercise 2 Page 2 Exercise 1. (30 points) Set up the Lagrangian for the household utility-maximization problem. Derive the FOCs of this problem. Re-arrange these FOCs to obtain three equilibrium expressions for the marginal rates of substitution between current consumption and (respectively) hours worked, future consumption and real money holdings: MRS(Ct;Nt),MRS(Ct;Ct+1) and MRS(Ct;Mt=Pt). Provide one or two sentences of intuition for each of these expressions.

Answer: Households Maximizing Expected Utility The representative household maximizes the expected utility of the present and future consumption of goods (Ct), labor supply (Nt) and real money balances (Mt/Pt) according to the following expected utility function: Max Ct;Nt;Mt;Bt  E0 Σt=0∞                                                               Ut(Ct,Mt/Pt)

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To close the model, we need an expression for aggregate output Yt. If all firms were charging the same price, and technology exhibited constant returns to scale, aggregate output would simply be Y_t=N_t≡Y_t^*. Make a conjecture that, in our case, aggregate output is Y_t=ΓY_t^* where Γ is assumed to be a fixed coefficient for simplicity. What is a reasonable range for Γ? Justify your answer in a few sentences.

Answer: Aggregate Output Yt Aggregate output Yt is the total output of a population of firms in a given time period. If all firms were charging the same price and technology exhibited constant returns to scale, aggregate output would simply

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can you solve macroeconomics problems

What is Macroeconomics? Macroeconomics is a branch of economics that studies the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy such as unemployment, inflation, economic growth, and trade deficits. Macroeconomics

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Abel’s Art Supply has sales of $610,000 and costs of $480,000. Interest expense is $40,000, dividends paid is $37,000, and depreciation is $60,000. The tax rate is 34 percent and there are 8,500 shares of stock outstanding. What is the earnings per share?

Answer Abel’s Art Supply has earnings per share of $6.08 ($610,000 – $480,000 – $40,000 – $37,000 – $60,000) x (1 – 0.34) / 8,500 shares = $6.08. Calculation The earnings per share is calculated by subtracting the costs from

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I want only the EBIT, depreciation, and operating cash flow for this problem: “During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent”

Answer: The EBIT, depreciation, and operating cash flow for this problem can be determined by using the following formula: EBIT = Gross Sales – Cost of Goods Sold – Selling Expenses – Depreciation. In this case, the EBIT would be

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I want only the EBIT for this problem: “During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent”

Answer: The EBIT for the Senbet Discount Tire Company is $159,600. This is calculated by taking the Gross Sales of $543,400 and subtracting the Cost of Goods Sold ($181,100) and Selling Expenses ($105,700). Debt ($487,000) and Depreciation ($63,000) have no

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During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent. What was the company’s net income?

Answer: Net Income of Senbet Discount Tire Company The company’s net income for the year was $122,000. This figure was calculated by taking the gross sales of $543,400 and subtracting both the cost of goods sold and the selling expenses,

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During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent. a. What was the company’s net income?

Answer The company’s net income is calculated by subtracting its cost of goods sold, selling expenses, debt, and depreciation from its gross sales. In this case, the company’s net income is $146,400. Supporting Subsections Gross Sales Senbet Discount Tire Company

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During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent. a. What was the company’s net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What was the company’s operating cash flow?

Answer: Net Income and Operating Cash Flow for Senbet Discount Tire Company Senbet Discount Tire Company had gross sales of $543,400 during the year. The company’s cost of goods sold was $181,100 and selling expenses were $105,700. The company also

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During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent. Show me HOW to determine the company’s operating cash flow?

Determining the Senbet Discount Tire Company’s Operating Cash Flow The operating cash flow of the Senbet Discount Tire Company can be determined by following the steps below. The operating cash flow is the amount of money the company has available

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During the year, the Senbet Discount Tire Company had gross sales of $543,400. The company’s cost of goods sold and selling expenses were $181,100 and $105,700, respectively. The company also had debt of $487,000, which carried an interest rate of 6 percent. Depreciation was $63,000. The tax rate was 22 percent. a. What was the company’s net income?

Answer The Senbet Discount Tire Company’s net income was $80,000. This was calculated by subtracting the company’s cost of goods sold and selling expenses from the gross sales, subtracting the debt interest rate from this figure, subtracting the depreciation, and

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2019- Current assets: 1,203; Net fixed assets: 5,732; Current liabilities: 541; Long Term debt: 3,192 2020-Current assets: 1, 278. Net fixed assets: 6,023. Current liabilities: 582. Long term debt: 3,435. In 2020, The company purchased $3,074 in new fixed assets. What was the cash flow from assets for 2020? The tax rate is 21 percent.

Answer Summary The cash flow from assets for 2020 was $2,455.60 after accounting for a 21% tax rate. Calculating Cash Flow from Assets in 2020 The cash flow from assets in 2020 can be calculated by subtracting current assets and

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2019- Current assets: 1,203; Net fixed assets: 5,732; Current liabilities: 541; Long Term debt: 3,192 2020-Current assets: 1, 278. Net fixed assets: 6,023. Current liabilities: 582. Long term debt: 3,435. In 2020, The company purchased $3,074 in new fixed assets. How much in fixed assets did the company sell in 2020? Can you provide a specific dollar amount?

Answer: In 2020, the company sold $291 worth of fixed assets. This number is calculated by subtracting the current net fixed assets from the previous year’s net fixed assets, and then subtracting the 2020 new fixed assets purchase amount. Calculation:

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Using the HO​ model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor​ intensive, Question content area bottom Part 1 A. avocado prices in the United States will fall once trade begins. B. Mexico will produce more soybeans once trade is introduced. C. soybean prices in Mexico will rise once trade begins. D. the United States will produce more avocados once trade is introduced.

Answer to Trade Model The HO model states that when two countries (in this case the US and Mexico) have different endowments of capital and labor, trade between them will lead to lower prices and greater production of the good

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apple 10k 2023 Identify off-balance sheet exposure and identify impact to leverage and repayment. Discuss access to a variety of capital markets segments to support business plan assumptions about need for growth capital. Major changes in assets/liabilities Significant trends in liquidity, working capital and balance sheet ratios. Analysis by business segment

Answer: Off-Balance Sheet Exposure & Impact to Leverage and Repayment Apple Inc.’s 10-K filing for 2023 provides an overview of the company’s off-balance sheet exposure and its impact to leverage and repayment. Apple is able to access a variety of

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apple 10k 2023

What is Apple’s 10K Report for 2023? The 10K report is a financial document that is filed by public companies annually with the Securities and Exchange Commission (SEC). It includes detailed financial information about the company such as its assets,

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apple 10k

Apple 10K Apple 10K is a document that is published annually by Apple Inc. that provides an extensive overview of the company’s financial performance. The 10K report includes Apple’s audited financial statements, a description of the company’s business, and other

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Demostrar la identidad cotx(sec²x-1)=tanx

Demostración de la identidad cotx (sec²x – 1) = tanx Esta identidad se puede demostrar estableciendo una relación entre los términos de ambos lados de la ecuación. Para ello, se utiliza la definición de cotangente y tangente, así como la

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A country with an MPC of 0.3 is looking to close a recessionary gap of 18 billion dollars. Assume that after establishing the correct amount of Government Spending, that the Government will then raise taxes to balance the budget. By how much will the government need to raise taxes?

Answer The government will need to raise taxes by $6 billion in order to close the recessionary gap. This is based on the Multiplier-Accelerator Model which states that the amount of government spending required to close a recessionary gap is

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A country with an MPC of 0.3 is looking to close a recessionary gap of 18 billion dollars. Assume that after establishing the correct amount of Government Spending, that the Government will then raise taxes to balance the budget. By how much will the government need to raise taxes?

Answer: Tax Increase to Close Recessionary Gap In order to close a recessionary gap of 18 billion dollars, a country with a marginal propensity to consume (MPC) of 0.3 will need to raise taxes. The amount of government spending to

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A country with an MPC of 0.3 is looking to close a recessionary gap of 18 billion dollars. Assume that after establishing the correct amount of Government Spending, that the Government will then raise taxes to balance the budget. By how much will the government need to raise taxes?

Answer: The amount of taxes the government needs to raise in order to close the 18 billion dollar recessionary gap in a country with an MPC of 0.3 is approximately 54 billion dollars. This is determined by taking the recessionary

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The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company’s three products: A, B, and C: Product A B C Selling price $ 150.00 $ 120.00 $ 140.00 Variable costs: Direct materials 101.25 21.50 75.80 Direct labour 15.00 50.00 20.00 Variable manufacturing overhead 3.75 12.50 5.00 Total variable cost 120.00 84.00 100.80 Contribution margin $ 30.00 $ 36.00 $ 39.20 Contribution margin ratio 20 % 30 % 28 % Due to a strike in the plant of one of its competitors, demand for the company’s products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate is $10 per hour, and only 3,280 hours of labour time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.)

Answer: Computing Contribution Margins Per Hour of Labour Time Spent In order to determine which product(s) to concentrate on next week in filling its backlog of orders, the Banner Company must calculate the amount of contribution margin that will be

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