The is and lm curves for the economy have the following, Ask an Expert

Economics

The IS and LM curves for the economy have the following equations :

IS : YIS = k (AP – 200 R )

LM: YLM = 5 (MS/P) + 500 R

Where the multiplier k= 2.5 ,

Autonomous Spending AP = 5200,

Money Supply MS = 1800

and Price P0 = 1.

Find the equilibrium level of interest rate

Find the equilibrium level of output

What will be the equilibrium output and interest rate for the prices of P1 = 1.2 and P2 = 2.0.

Please graph the relationship between the price level and the output y.

What variable does this relationship represent?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92201579

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