Question: Please solve A, B, C, D 2. Assume that an economy is characterized by the following equations: C = 100 + (3 (X -T) T

 Please solve A, B, C, D 2. Assume that an economy

Please solve A, B, C, D

is characterized by the following equations: C = 100 + (3 (X

2. Assume that an economy is characterized by the following equations: C = 100 + (3 (X -T) T = 600 G = 500 I = 800 - 50 7 Ms = Md = 0.5Y - 50r a. Write the numerical IS curve for the economy, expressing Y as a numerical function of G, T, and r. Y= 3000 - 50r b. Write the numerical LM curve for this economy, expressing r as a function of Y and M / P. 1= 0.014- 24.0/P c. Solve for the equilibrium values of Y and r, assuming P = 1.0 and M = 1,200. How do they change when P = 2.0? Check by computing C, I, and G. P= 1.0 M= 1200 P = 2.0 y = 2800 Y= 2400 1 = 4.0 1= 12.0 d. Write the numerical aggregate demand curve for this economy, expressing Y as a function of G, T, and M / P. y= 2000+800/ P

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