C = 100 + (1-t) Y t= 0.25 1=350-50i G=800 L = 0.25Y-62.5i M/P = 500 solve for: 1. IS equation

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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C = 100 + (1-t) Y t = 0.25
1 = 350-50i
L = 0.25Y - 62.5i
M/P = 500
solve for:
1. IS equation
2. LM equation
3. solve for the demand for real balances
4. equilibrium output
5. if G increases by 200 such that G2 = 1000, by how much will equilibrium Y change.
G = 800
Transcribed Image Text:C = 100 + (1-t) Y t = 0.25 1 = 350-50i L = 0.25Y - 62.5i M/P = 500 solve for: 1. IS equation 2. LM equation 3. solve for the demand for real balances 4. equilibrium output 5. if G increases by 200 such that G2 = 1000, by how much will equilibrium Y change. G = 800
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