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2. (16 points) An economy is initially described by the following equations: C = 500+ 0.75(Y...
The following equations describe an economy. Y=C+I+G C=50+0.75*(Y-T) I=150-10r (M/P)d=Y-50r G=250 T=200 M=3,000 P=4 Identify each...
The following equations describe an economy. Y=C+I+G C=50+0.75*(Y-T) I=150-10r (M/P)d=Y-50r G=250 T=200 M=3,000 P=4 Identify each of the variables, and briefly explain their meaning. From the above list, use the relevant set of equations to derive the IS curve. Graph the IS curve on an appropriately labeled graph. From the above list, sue the relevant set of equations to derive the LM curve. Graph the LM curve on the same graph you used in part b). What are the equilibrium...
graph the IS and LM curves An economy is initially described by the following equations: C...
graph the IS and LM curves
An economy is initially described by the following equations: C = 60+ 0.8(Y-T) 1 = 120-5 M/P=Y-25r G = 200 T = 200 M = 3000 P-3 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the following equations: a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing...
Stacked An economy is initially described by the following equations: C = 60+ 0.8(Y-T) I =...
Stacked An economy is initially described by the following equations: C = 60+ 0.8(Y-T) I = 120-5 M/P = Y-25r G = 200 T = 200 M = 3000 P = 3 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place point A at the equilibrium interest rate and level of income. IS: Y= LM: Y= IS: Y= LM:...
1. Suppose an economy is represented by the following equations: C=500+.75(Y-T) I=1000 -50r (M/P)d=Y-200r G=1000 T=1000...
1. Suppose an economy is represented by the following equations: C=500+.75(Y-T) I=1000 -50r (M/P)d=Y-200r G=1000 T=1000 M=6000 P=2 Use these equations to derive both the IS and LM curves. Suppose that a newly elected president cuts taxes by 20%. Assuming that the money supply is held constant, what is the equilibrium interest rate in this economy? Round your answer to the nearest tenth. Do not use a percent sign when entering your answer. Your answer should not be given as...
9.9. The following equations describe an economy: C = 2000 +0.75 (Y - T) Ip =...
9.9. The following equations describe an economy: C = 2000 +0.75 (Y - T) Ip = 600 - 50r G = 500 NX = 0 T= 400 Md/P = 0.25 Y - 50r Ms/P = 500 What is the equation that describes the IS curve? a. Y = 11200 - 200 r. b. 2800 +0.75Y - 50 r C. Y = 2800 - 50 r d. Y = 2000 + 200 r (4 Points) Enter your answer
4. An economy can be described by the following equations: C = 5+.8(Y-T) I = 2-r...
4. An economy can be described by the following equations: C = 5+.8(Y-T) I = 2-r G = 2 T = 2 L(r,Y) = 4 + 4y -.5r M = 2 P=1 Solve algebraically for an equation for the IS curve (with 'r' on the left-hand side). Do the same for the LM curve. Finally, solve for the equilibrium values of 'r' and 'Y' in the ISLM model:
An economy is initially described by the following equations: a. Derive and graph the IS and...
An economy is initially described by the following equations: a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place point A at the equilibrium interest rate and level of income. C = 60+ 0.8(Y-T) I = 120-5r M/P=Y-25r G = 200 T= 200 M = 3000 P=3 IS: Y= LM: Y= IS-LM Graph 800 850 900 950 1,000 1,050 1,100...
Question 1 of 6 > Stacked O Attempt An economy is initially described by the following...
Question 1 of 6 > Stacked O Attempt An economy is initially described by the following equations: C - 60+ 0.8(Y-T 1 - 120-57 MIP-Y-257 G=200 T-200 M-3000 P3 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place point at the equilibrium interest rate and level of income. IS: Y- 1100 - 25 LM: Y 1000+ 25 IS-LM Graph...
The money market for this economy is described by the equations: (M/P) = 0.4Y - 40r...
The money market for this economy is described by the equations: (M/P) = 0.4Y - 40r M = 1200 P=1 12. Derive a formula for the LM curve, showing Y as a function of r. 13. What are the short run values of Y and ? 14. What are the short run values of Y and rif G increases by 200? What is the multiplier? Is the value different from what you calculated for question 9? Explain why it is...
5. Consider the economy of Hicksonia, which can be described by the following equations: (1) C=300+...
5. Consider the economy of Hicksonia, which can be described by the following equations: (1) C=300+ 0.80 (Y-T) (2) I= 150-20r (3) L=0.90Y - 90r In addition, the following variables are given: T = 100, G = 150, NX --80, M-1800, and P-1. a. Derive the numerical equation for the IS curve. b. Derive the numerical equation for the LM curve. c. Calculate the equilibrium levels of output Y and the interest rater. Verify your results by showing that the...
graph the IS and LM curves
An economy is initially described by the following equations: C = 60+ 0.8(Y-T) 1 = 120-5 M/P=Y-25r G = 200 T = 200 M = 3000 P-3 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the following equations: a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing...
Stacked An economy is initially described by the following equations: C = 60+ 0.8(Y-T) I = 120-5 M/P = Y-25r G = 200 T = 200 M = 3000 P = 3 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place point A at the equilibrium interest rate and level of income. IS: Y= LM: Y= IS: Y= LM:...
9.9. The following equations describe an economy: C = 2000 +0.75 (Y - T) Ip = 600 - 50r G = 500 NX = 0 T= 400 Md/P = 0.25 Y - 50r Ms/P = 500 What is the equation that describes the IS curve? a. Y = 11200 - 200 r. b. 2800 +0.75Y - 50 r C. Y = 2800 - 50 r d. Y = 2000 + 200 r (4 Points) Enter your answer
4. An economy can be described by the following equations: C = 5+.8(Y-T) I = 2-r G = 2 T = 2 L(r,Y) = 4 + 4y -.5r M = 2 P=1 Solve algebraically for an equation for the IS curve (with 'r' on the left-hand side). Do the same for the LM curve. Finally, solve for the equilibrium values of 'r' and 'Y' in the ISLM model:
An economy is initially described by the following equations: a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place point A at the equilibrium interest rate and level of income. C = 60+ 0.8(Y-T) I = 120-5r M/P=Y-25r G = 200 T= 200 M = 3000 P=3 IS: Y= LM: Y= IS-LM Graph 800 850 900 950 1,000 1,050 1,100...
Question 1 of 6 > Stacked O Attempt An economy is initially described by the following equations: C - 60+ 0.8(Y-T 1 - 120-57 MIP-Y-257 G=200 T-200 M-3000 P3 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place point at the equilibrium interest rate and level of income. IS: Y- 1100 - 25 LM: Y 1000+ 25 IS-LM Graph...
The money market for this economy is described by the equations: (M/P) = 0.4Y - 40r M = 1200 P=1 12. Derive a formula for the LM curve, showing Y as a function of r. 13. What are the short run values of Y and ? 14. What are the short run values of Y and rif G increases by 200? What is the multiplier? Is the value different from what you calculated for question 9? Explain why it is...
5. Consider the economy of Hicksonia, which can be described by the following equations: (1) C=300+ 0.80 (Y-T) (2) I= 150-20r (3) L=0.90Y - 90r In addition, the following variables are given: T = 100, G = 150, NX --80, M-1800, and P-1. a. Derive the numerical equation for the IS curve. b. Derive the numerical equation for the LM curve. c. Calculate the equilibrium levels of output Y and the interest rater. Verify your results by showing that the...
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