9. Consider two closed economies, A and B, characterized by the following goods and money markets:

The slope of the demand for real money balances is steeper in economy A than in economy B. We also know the shape of the IS and LM lines for these two economies:

For each of the following statements, indicate whether it is correct by checking the appropriate box:

a) Economy A is defined by the lines IS1 and LM1 ;

b) Economy A is defined by the lines IS1 and LM2 ;

c) Economy A is defined by the lines IS2 and LM1 ;

d) Economy A is defined by the lines IS2 and LM2 ;

e) None of the above statements is correct.

Q9

***we could have multiple answer***

10. The following graph represents the goods market of a closed economy:

Notice that the slope of D > slope of B > slope of C and the slope of C = slope of A. The lines A, B, C and D represent four levels of aggregate demand. This economy experiences the following sequence of events:

(1) the income tax rate increases ;

(2) private investment increases;

(3) the marginal propensity to save and incompressible consumption fall.

The aggregate demand before event (1) will be called the "initial aggregate demand" and the aggregate demand after event (3) the "final aggregate demand". For each of the following, indicate whether it can fit the above timeline of events by checking the appropriate box:

(a) A is the initial aggregate demand and D is the final aggregate demand ;

b) B is the initial aggregate demand and D is the final aggregate demand;

c) D is the initial aggregate demand and B is the final aggregate demand;

d) D is the initial aggregate demand and D is the final aggregate demand;

e) None of the above statements is correct.

***we could have multiple answer***

Economie A Economie B - I=I08i - I=I02i - c=0,6 - c=0,2 - t=0,1 - t=0,4 Economie A Economie B - I=I08i - I=I02i - c=0,6 - c=0,2 - t=0,1 - t=0,4