.Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS...
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.Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place po A at the equilibrium interest rate and level of income. IS: Y= LM: Y= b. Calculate the equilibrium exchange rate, level of income, and net exports. equilibirum e: equilibrium Y: equilibrium NX: % 30 25 24 22 20 18 16 14 12 10 6 IS-LM Graph 2 0 2.000 3.000 4,000 5.000 LM 6.000 7.000 8.000 1.000 C I = 900-50r NX = 500-50€ M/P = Y-125r G = 500 T = 500 M = 6000 P = 3 r* = 8 800+ 0.8(Y-T) .Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place po A at the equilibrium interest rate and level of income. IS: Y= LM: Y= b. Calculate the equilibrium exchange rate, level of income, and net exports. equilibirum e: equilibrium Y: equilibrium NX: % 30 25 24 22 20 18 16 14 12 10 6 IS-LM Graph 2 0 2.000 3.000 4,000 5.000 LM 6.000 7.000 8.000 1.000 C I = 900-50r NX = 500-50€ M/P = Y-125r G = 500 T = 500 M = 6000 P = 3 r* = 8 800+ 0.8(Y-T)
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