Question: Consider the following numerical example of the IS-LM model: C = 199 + 0.53YD / = 152 + 0.18Y - 1,033/ G = 250 T

 Consider the following numerical example of the IS-LM model: C =

Consider the following numerical example of the IS-LM model: C = 199 + 0.53YD / = 152 + 0.18Y - 1,033/ G = 250 T = 200 i = 0.06 Derive the /S relation. (Hint: You want an equation with Y on the left side of the equation and everything else on the right.) Y= 1706.90 - 3562.07 i. (Round your calculations of the intercept and slope terms to two decimal places.) The central bank sets an interest rate of 6%. In the equations given above, this decision is represented as / = .06 and is known as the LM relation. Given this model's /S and LM equations, the equilibrium real output, Y, is . (Round your response to the nearest integer.)

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