Consider the following economy :C=100+0.8 YdI= 50 – 25iG= T= 50=200P%3DMd= Y – 25 i1. Calculate the IS and LM curves.2. Calculate the equilibrium levels of output and interest.

Answer: Introduction: Therefore Y = 800-12i

Answered: Consider the following economy :…

Consider the following economy : C=100+0.8 Y I= 50 - 25i G= T= 50 M' -=200 Md = Y – 25 i 1. Calculate the IS and LM curves. 2. Calculate the equilibrium levels of output and interest.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the following economy :
C=100+0.8 Yd
I= 50 – 25i
G= T= 50
=200
P
%3D
Md= Y – 25 i
1. Calculate the IS and LM curves.
2. Calculate the equilibrium levels of output and interest.

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