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questions are in the picture Review Problems 3. Consider an economy described by the following equations: Y =C+I+G+X C =300 + .8Ya (Income identity) (Consumption)

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Review Problems 3. Consider an economy described by the following equations: Y =C+I+G+X C =300 + .8Ya (Income identity) (Consumption) I = 200-1,500R (Investment) X = 100-.04Y -500R (Net exports) M = (.5Y - 2,00OR)P (Money demand) with government spending G = $200, the tax rate f = .2, the nominal money supply M = $550, and the predetermined price level P = 1. a. What is the IS curve? b. What is the LM curve? c. What are the values of income and the interest rate when spending balance occurs and the demand for money equals the supply of money?5. Consider an economy described by the following equations: Y =C+I+G+X (Income identity) C = 400 + .9Ya (Consumption) I = 300-2,000R (Investment) X = 100-.05Y -1,000R (Net exports) M = (.4Y - 1,000R)P (Money demand) with government spending G =$100, the tax rate t = .5, the nominal money supply M = $180, and the predetermined price level P = 1. . a. What is the IS curve? b. What is the LM curve? c. What are the values of income and the interest rate when spending balance occurs and the demand for money equals the supply of money

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