Economics

1. Question 1 Refer to table one and figure one to answer the following question: Let us assume that the product, money, labor, and output markets are in equilibrium at yo, Po, No, and ro. Calculate Vz, V3, and P3 when dm = 100. [ g = g + gy (v) + gr(r) ] (20 points) Table 1 yo = 2000 dMS = 100 MPC = C' 0.9 MPT = t' 0.1 MPI = nx' -0.05 gy = 0.1 i1= -5 i 2 = -5 gr= -10 i'= -40 K' 0.3 -20 M = 100 PO = 20 dp/dy |s = 0.02