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Suppose that consumption, investment , government spending taxes and disposal income are given by the following equations C=100+0.5Yd |=30040r G=150 and T=100 1. Derive the
Suppose that consumption, investment , government spending taxes and disposal income are given by the following equations C=100+0.5Yd |=30040r G=150 and T=100 1. Derive the IS curve and Graph it. 2. Suppose that the government wants to finance a new higher by increasing taxes to 200 Derive the new IS curve and Graph it . Does the IS curve shift to the left or to the right
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