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Suppose the economy is represented by the following equations:

Md/P = 6Y - 120r Ms/P = 5,400
C = 180 + 0.7(Y-T) I = 100 - 18r + 0.1Y T = 400 G = 400
Y = C + I + G

a. prepare the numerical formula for the IS curve?
b. prepare the numerical formula for the LM curve?
a. What is the equilibrium level of r?
b. What is the equilibrium Y?
c. What is the value of consumption?
d. What is the value of Investment?
e. What is the level of real Money Demand?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M942742

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