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Estimation of equilibrium income using IS - LM model.

Find out the equilibrium values of r, Y,C I, Xn, Md and T from these equations.

1. Y = C + I + G + Xn G = 1,000

2. C = 2,000 + .6(Y-T) Ms = 1,000

3. T = 100 + .08Y Md = 500 + .08Y - 8r

4. I = 300 - 8r

5. Xn = 200 - .05Y

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M922080

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