Question assume an economy is described by the following, Ask an Expert

Economics

Question: Assume an economy is described by the following economic parameters:

C = 0.8YD

YD = Y + TR - tY

TR = 100

t = 0.3

I = 1000 - 65i

G = 600

L = 0.25Y - 75i

M/P = 600

- What is the equation that describes the IS curve?

- What is the general definition of the IS curve?

- What is the equation that describes the LM curve?

- What is the general definition of the LM curve?

- What are the equilibrium levels of output and interest rates in this economy?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92598421

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