If X is 0, 2, 4, 6 or8: D=C+I+G C = 50+ 0,8(YT) - 100r T...

 

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If X is 0, 2, 4, 6 or8: D=C+I+G C = 50+ 0,8(YT) - 100r T = 0,2Y I = 0,2Y 100r G = 250 Ma = 0,22Y 100r) Ms = 300 Y = 0,2[D-Y] -100r}* r = 0,8[Ma - Ms] B₁ = T₁-G₁ B₂ = T₂ G₂ + B₁r₁. B₁T₁} a) Find the equilibrium values of income and interest rates. Sketch the IS and LM curves and show the equilibrium point on it. b) If the Central Bank increases money supply from 300 to 500 while the minister of economics decreases tax rate from %20 to %10. Show the results of these changes on IS-LM curves. c) What would be government budget before B₁ and after B₂ policy changes. d) Set up proper differential equation system for given IS-LM model, with matrix algebra, determine the stability conditions from, trace and determinant. e) Calculate the eigen values, (two decimal after comma) and eigen vectors, and solve the differential equation system of given dynamic IS-LM model f) Sketch phase diagram and determine direction of arrows with partial derivatives. Verify the stability condition that you find in part d. If X is 0, 2, 4, 6 or8: D=C+I+G C = 50+ 0,8(YT) - 100r T = 0,2Y I = 0,2Y 100r G = 250 Ma = 0,22Y 100r) Ms = 300 Y = 0,2[D-Y] -100r}* r = 0,8[Ma - Ms] B₁ = T₁-G₁ B₂ = T₂ G₂ + B₁r₁. B₁T₁} a) Find the equilibrium values of income and interest rates. Sketch the IS and LM curves and show the equilibrium point on it. b) If the Central Bank increases money supply from 300 to 500 while the minister of economics decreases tax rate from %20 to %10. Show the results of these changes on IS-LM curves. c) What would be government budget before B₁ and after B₂ policy changes. d) Set up proper differential equation system for given IS-LM model, with matrix algebra, determine the stability conditions from, trace and determinant. e) Calculate the eigen values, (two decimal after comma) and eigen vectors, and solve the differential equation system of given dynamic IS-LM model f) Sketch phase diagram and determine direction of arrows with partial derivatives. Verify the stability condition that you find in part d.