Question
AD = C +I + G C = $200 + 0.8YD G = $1,200 I = $500 - 40i TA = 0.375Y TR = $125
AD = C +I + G C = $200 + 0.8YD G = $1,200 I = $500 - 40i
TA = 0.375Y TR = $125 YD = Y - TA + TR
Ms/P = $7,000 and L = Md = 2Y - 40i
1.Derive the IS Curve relationship
2.Derive the LM Curve relationship
3.Solve for equilibrium (i,Y) in the IS-LM model
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International Business
Authors: Michael Czinkota, Iikka A. Ronkainen, Michael H. Moffett
8th edition
470530658, 470530650, 978-0470530658
