Help about economics?

Question

C=30+0.9Y I=130-100r Mt=0.1Y Ms=200-300r M=210 W=20 Lf=500 Y=60*(Y^1/2)

How do you solve this? And what is Kenyesian economy? Any help appreciated.

Answer 1

Absolutely right - this is really (New) Keynesian economics.

Though you should provide description of what each means, here is example:

C - consumption

Y - GDP

I - Investments

r - Interest rate

M - ? Monetary base ?

Mt - ? taxes (gov revenue)?

Ms - ? money supply ?

W - ? wages ?

Lf - ? money liquidity ?

In general solution is quite simple - the only thing required here is base of how these elements are combined. to begin it is enough to know that Y=C+I+G for closed economy.

Y=60*(Y^1/2) - this one have no usual meaning - are you sure you have provided right information ? Because it can be  simplified directly to Y=60²

Provide some explanations or give right and full initial data - only after that I can solve it for you.