Question
the following equations describe an economy. (think of C, I, G, etc., as being measured in billions and i as a percentage; a 5 percent
the following equations describe an economy. (think of C, I, G, etc., as being measured in billions and i as a percentage; a 5 percent interest rate implies i = 5.)
C = 0.8(1 t)Y t = 0.25
I = 900 50i
G = 800
L = 0.25Y 62.5i
M /
P = 500
- What is the equation that describes the IS curve? b. What is the general definition of the IS curve? c. What is the equation that describes the LM curve? d. What is the general definition of the LM curve? e. What are the equilibrium levels of income and the interest rate?
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Business Its Legal Ethical and Global Environment
Authors: Marianne M. Jennings
11th edition
1337103578, 978-1337514392, 133751439X, 978-0357690130, 978-1337103572
