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Consider the following IS-LM model: C = 235 +0.51YD / = 153+0.18Y-946i G = 365 T = i = MIP = Y = 1,827 C
Consider the following IS-LM model: C = 235 +0.51YD / = 153+0.18Y-946i G = 365 T = i = MIP = Y = 1,827 C = 1,018 1 = 444 MIP = 3,499 292 0.04 2.1Y-8,436/ The IS equation is determined to be Y = 1948.65-3051.61/. The LM equation is given as i = 0.04 Initial equilibrium values of Y, C, I, and the real money supply are calculated as Now suppose that the central bank cuts the interest rate to 3%. In a graph of the IS-LM model, this causes the LM curve to shift downward. Following the change in the interest rate to 3%, the value of equilibrium real output becomes to the nearest integer.) (Round your response brrect: 0
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