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The IS and LM curves for the economy have the following equations: Y = k (A, - 50 i) Y - 2(MS / P) +

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The IS and LM curves for the economy have the following equations: Y = k (A, - 50 i) Y - 2(MS / P) + 100 i where k - 2, Ap = 4000, Ms = 3000 and P =1 a- Find the equilibrium level of income and the equilibrium interest rate. b- Complete following table which represents points on aggregate demand curve. Price Interest Rate Real GDP .8 1 1.5 2.0 c- Suppose that autonomous spending increases by $500, complete following table which represents points on aggregate demand curve. Price Interest Rate Real GDP 8 1 1.5 2.0

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