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Consider the following IS-LM-BP model: IS Model: C - 250 + 0.5(Y - T); T = 110 + 0.11Y; / = 150 + 0.35Y -1000r;
Consider the following IS-LM-BP model: IS Model: C - 250 + 0.5(Y - T); T = 110 + 0.11Y; / = 150 + 0.35Y -1000r; G = 200 X = 250 + 0.2Y f - 1600E; IM = 110 + 1650E + 0.15Y; Y f = 0.4Y LM Model: ( )* = 2000; (47 ) =2Y - 5000r. BP Model: CA = NX = X - IM; CK = 550(r - r/); rf = 0.16. Consider that the government has decided to follow the contractionary fiscal policy in which it sets the new level of government spending to 180 units. What will be its effect on the various variables below? The IS curve shifts to ... by .. units/percentage points (pp)/percent (%%) (3 points) Choose.. The CK curve shifts to ... by ... units/percentage points (pp)/percent (9%) (3 points) Choose.. * goes ... by ... units/percentage points (pp)/percent (%) Choose.. * goes .. by .. units/percentage points (pp)/percent (%) Choose.. The ZZ curve shifts to ... by .. units/percentage points (pp)/percent (%) (3 points) Choose.. Y* goes .. by ... units/percentage points (pp)/percent (%) Choose... X* goes ... by . units/percentage points (pp)/percent (%) Choose. The BP curve shifts to ... by ... units/percentage points (pp)/percent (*%) (3 points) Choose.. IM goes .. by . units/percentage points (pp)/percent (%) Choose.. The LM curve shifts to ... by .. units/percentage points (pp)/percent (%) (3 points) Choose.. * goes .. by ... units/percentage points (pp)/percent (%) Choose.. C* goes ... by . units/percentage points (pp)/percent (%%) Choose.. t goes ... by .. units/percentage points (pp)/percent (9%) Choose
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