Question

Consider the following IS-LM Model

C = 189 + 0.52Yd

I = 145 + 0.12Y - 1025i

G = 329

T = 263

(M/P)^d = 1.6Y - 7737i

M/P = 1579

The IS equation is determined to be Y=1461.78-2847.22i

The LM equation is determined as i=-0.20408+0.00021Y

Initial equilibrium values of Y,i,c, and I are calculated bellow.

Y=1278

i=6.43%

C=717

I=232

Suppose that money supply increases to (m/p)=1737

Calculate the equation for the new LM relation.

i=-0.22451+0.00021Y

1. giving the above IS-LM equation, what is the equilibrium output(Y) interest(i)?

what is the equilibrium value of C?

what is the equilibrium value of I ?

DETERMINE THE VALUE OF C+I+G? round answer to the nearest integer.