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The economy of Spain is represented by the following equations The consumption function is given by C= 1100 + 0.5(Y-T). The investment function is given
The economy of Spain is represented by the following equations
- The consumption function is given by C= 1100 + 0.5(Y-T).
- The investment function is given by I= 100 - 55r.
- Government purchases are 600.
- Taxes are 200.
- Money demand is(M/P)d=Y- 50r.
- Money supply is 6000 and the price level is fixed at 2.
Calculate the IS curve.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
