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C = C a + 0.85 (Y - T); C a = 525 - 15 R T = 910 + 0.175 Y I p =
C = Ca + 0.85 (Y - T); Ca = 525 - 15 R T = 910 + 0.175 Y
Ip = 3500 - 24 R G = 4000 NX = 750 - 0.07 Y
- Compute the multiplier for this economy.
- Clearly define and derive the equation of the autonomous spending Ap.
- Derive the IS curve.
- Calculate the values of the Y and Ap when R=4.50
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