1
answer
1
watching
289
views
20 Oct 2018
Consider the Following Economy:
Y = (C + I + G + NX) <-Income Identity
C = 300*0.8YD<-Consumption
I = 200-1500r <-investment
NX = 100-0.04Y-500r <-net exports
M^d = (0.5Y-2000r) <-Money Demand
G = 1200
t (tax rate) = 0.2
Money Supply (M^s) = $550
P = $1
a. What is the IS Curve?
b. What is the LM Curve?
c. What are the values of Y (income) and interest rate (r) when the IS-LM model is in equilibrium?
Consider the Following Economy:
Y = (C + I + G + NX) <-Income Identity
C = 300*0.8YD<-Consumption
I = 200-1500r <-investment
NX = 100-0.04Y-500r <-net exports
M^d = (0.5Y-2000r) <-Money Demand
G = 1200
t (tax rate) = 0.2
Money Supply (M^s) = $550
P = $1
a. What is the IS Curve?
b. What is the LM Curve?
c. What are the values of Y (income) and interest rate (r) when the IS-LM model is in equilibrium?
Nestor RutherfordLv2
22 Oct 2018
