1.

Suppose that the economy is characterized by the following behavioral? equations:

C? = 140 ?+ 0.70YD

I ?= 140

G? = 130

T? = 110

Equilibrium GDP(Y) = _______

Disposable Income (YD) = ______

Consumption spending (C) = ______

(two decimal places answer)

2.(Fill the blanks with correct answer)

Consider the following numerical example of the ?IS-LM?model:

C= 236 + 0.48YD

I= 141 + 0.13Y - 1148i

G= 290

T= 232

i= 0.04

Derive the IS relation. ?(Hint?: You want an equation with Y on the left side of the equation and everything else on the?right.)

Y= _______?_______i. ?(Round your calculations of the intercept and slope terms to two decimal places?.)

The central bank sets an interest rate of 6?%. In the equations given?above, this decision is represented as i?=_______ and is known as the LM relation.

Given this?model's IS and LM?equations, the equilibrium real?output, ?Y, is _______.(Round your response to the nearest integer.?).

The pictures below are the example questions:

1.

Suppose that the economy is characterized by the following behavioral equations: C = 170 + 0.90YD / = 110 G = 160 T = 140 Equilibrium GDP (Y) = 3,140.00 . (Round your response to two decimal places.) Disposable income (Y,) = 3,000.00 . (Round your response to two decimal places.) Consumption spending (C) = 2,870.00 . (Round your response to two decimal places.)C = 184 +0.52YD / = 144 +0.21Y-830/ G = 330 T = 264 i = 0.04 Derive the /S relation. (Hint: You want an equation with Y on the left side of the equation and everything else on the right.) Y= 1,928.59 - 3,074.07 i. (Round your calculations of the intercept and slope terms to two decimal places.) The central bank sets an interest rate of 4%. In the equations given above, this decision is represented as / = 0.04 and is known as the LM relation. Given this model's /S and LM equations, the equilibrium real output, Y, is 1,806 . (Round your response to the nearest integer.) Use the expression given below along with the values of equilibrium real output and the interest rate to determine the level of the real money supply