Suppose there are two islands. The total population on the two islands is 500 people. The initial
stock of fiat money is $500. The money stock increases according to Mt=1.1Mt1. The
probability that a person is on Island 1 is 1/4 and the probability that a person is on Island 2 is
3/4. Let l(pti)=4 (so that labor supply does not depend on price). a) Write down the money
market-clearing condition for each island b) Solve for the equilibrium price level in date 1 . c)
Write down the per-person transfer that the government gives to each old person. d) Compute the
value of the transfer..
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Suppose there are two islands. The total population on the two island.pdf
1. Suppose there are two islands. The total population on the two islands is 500 people. The initial
stock of fiat money is $500. The money stock increases according to Mt=1.1Mt1. The
probability that a person is on Island 1 is 1/4 and the probability that a person is on Island 2 is
3/4. Let l(pti)=4 (so that labor supply does not depend on price). a) Write down the money
market-clearing condition for each island b) Solve for the equilibrium price level in date 1 . c)
Write down the per-person transfer that the government gives to each old person. d) Compute the
value of the transfer.
