CThe following equations describe an economy C = 100 + 0.75 Y, I= 50 – 25i where C' is aggregate consumption ,Y is disposable income, I is aggre gate investment, T is taxes, G is go vernment purchases and i is the int erest rate. Derive the IS curve for th T= G= 50 e economy.

CThe following equations describe an economy C = 100 + 0.75 Y, I= 50 – 25i where C' is aggregate consumption ,Y is disposable income, I is aggre gate investment, T is taxes, G is go vernment purchases and i is the int erest rate. Derive the IS curve for th T= G= 50 e economy.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

CThe following equations describe an economy
C = 100 + 0.75 Y.
I = 50 – 25i
where C' is aggregate consumption
, Y is disposable income, I is aggre
gate investment, Tis taxes, G is go
vernment purchases and i is the int
erest rate. Derive the IS curve for th
T= G= 50
e economy.

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