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IS Curve: Y = C + I + G, C = b(Y-T), I = a -r LM Curve: (M/P) = aY - Br Q1: AG

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IS Curve: Y = C + I + G, C = b(Y-T), I = a -r LM Curve: (M/P) = aY - Br Q1: AG = 1, A(M/P) = 0, b = 0.8. Calculate AY and Ar Q2: Plot IS and LM curves to describe the situation in Q1 Q3: 4G = 1, A(M/P) = -1, b = 0.8. Calculate AY and Ar Q4: Plot IS and LM curves to describe the situation in Q3

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