Question
3. (a) given that in an economy C=0.8(1-t)Y, t=0.25,I=900-50i,G=800,L=0.25Y- 62.5 i, (M/P) =500. (i) Derive the equation for the IS curve. (ii) Derive the LM
3. (a) given that in an economy
C=0.8(1-t)Y, t=0.25,I=900-50i,G=800,L=0.25Y- 62.5 i, (M/P) =500.
(i) Derive the equation for the IS curve.
(ii) Derive the LM equation.
(iii) What are equilibrium levels of Y and i.
(b) Explain policy mix. What is its significance, explain using diagrams.
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Global Capitalism Its Fall And Rise In The Twentieth Century
Authors: Jeffry Frieden
1st Edition
039332981X, 9780393329810
