Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
1) C = a0 + a1 (Y-T) + a2 (WSM) + a3 (WRE) + a4 (CC) + a5 (r)
1′) C = a0 + a1 (Y-200) + a2 (10,000) + a3 (15,000) + a4 (100) + a5 (3)
2) I = b0 + b1AS + b2CF + b3 (r)
2′) I = b0 + b1 (160) + b2 (1800) + b3 (3)
3) G = G
3′) G = 400
4) X-M = X-M
4′) X-M = -200
Where: a0 = 200, a1 = .80, a2 = .05, a3 = .10, a4 = .8, a5 = -500, b0 = 300, b1 = .5, b2 = .5, b3 = -200
Derive an expression for the consumption function and graph it on your exam sheet. Show all work.
2.Interpret a2 and a3 (i.e., what do they measure) and why are they so important in terms of measuring the impact of the Great Recession on consumption.
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