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Given Malaxsia economic information as follows Consumption, C= 400+0.8Yd Investment, I= 400-150r G= 300 T= 200 Real money supply M/P = 200 M = 0.5Y
Given Malaxsia economic information as follows Consumption, C= 400+0.8Yd Investment, I= 400-150r G= 300 T= 200 Real money supply M/P = 200 M = 0.5Y M. (speculative) = 1000-500r Price.P=2 (a) Form the IS curve and the LM curve in Y andr (b) Find the equilibrium (c) If the autonomous expenditure increase to RM500 millions, Find the new equilibrium II. Find the size of vertical and horizontal displacements III. Sketch the differences before and after the increasing in autonomous expenditure. Explain (d) If the real money supply decreasing to RM200 millions, 1. Find the new equilibrium II. Find the size of horizontal and vertical displacements III. Sketch the differences before and after the decreasing in real money supply.Explain
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