IS - LM: Consider an economy where: C =100 + (1/3) (Y - T). I= 800 -
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Question:
IS - LM:
Consider an economy where:
C =100 + (1/3) (Y - T).
I= 800 - 100r
G = 300
T = 400
(M/P)^d = 0.5Y + 300
M = 1600
P = 2
a) Derive the IS and LM curve and calculate all equilibrium values for this economy and also draw the graph.
Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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