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Find the equation for Ap, equation for the IS and LM curve.

Suppose the subsequent parameters:

C = Cp + 0.95Y
(MIP)d = 0.25Y - 850r
Ca = 1000 - 40r
NX = 950 - 0.15Y
Ms = 1100
Ip = 800 - 20r
P = 1)00
G = 900

1. (3%) Illustrate what is the equation for the equilibrium value of Ap?

2. (2%) Illustrate what is the MLR? k?

3. (2%) Illustrate what is the equation for the IS curve?

4. (2%) Illustrate what is the equation for the LM curve?

5. (1%) Illustrate what is the equilibrium output level?

6. (1%) Illustrate what is the equilibrium interest rate?

7. (3%) Illustrate what is the equation for the AD curve?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917372

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