An economy is initially described by the following equations:
C=500+ 0.75(Y-T) I = 1,000 - 50r M/P = Y-200r G = 1,000 T = 1,000 M = 6,000 P = 2

a) Derive the IS curve.
b) Graph the IS curve.
c) Derive the LM curve Graph the LM curve.

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17-06-2024
Business

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An economy is initially described by the following equations:
C=500+ 0.75(Y-T) I = 1,000 - 50r M/P = Y-200r G = 1,000 T = 1,000 M = 6,000 P = 2

a) Derive the IS curve.
b) Graph the IS curve.
c) Derive the LM curve Graph the LM curve.

Sagot :

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