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4. Suppose the monetary policy curve is given by r = 2.5 + 0.511 and the IS curve is given by Y = 10 r.|
4. Suppose the monetary policy curve is given by r = 2.5 + 0.511 and the IS curve is given by Y = 10 r.| a. Find the expression for the aggregate demand curve b. Calculate aggregate output When the ination rate is at 1%, 2%, and 3% and plot the corresponding aggregate demand curve c. If taxes decrease What impact would this have on the demand curve drawn in part (b)
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