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as breif as possible please 2. Consider an economy with the following equations: c = 500 + 0.75(YT) I = 1000 - 50? E =

as breif as possible please

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2. Consider an economy with the following equations: c = 500 + 0.75(YT) I = 1000 - 50?\" E = Y 200?\" P G = 1000 T = 1000 M = 6000 P = 2 a) Derivefobtain the functions of IS curve and the LM curve. Calculate the equilibrium interest rate and income. b) Suppose government reduces tax by 20 percent. Assuming that the money supply is held constant, what are the new equilibrium interest rate and income? c) Now assume that the Bank of Canada adjusts the money supply to hold the interest rate constant (i.e. the same as what you obtained in part a). What is the new equilibrium income? What must the money supply be

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