Consider the following IS-LM model: C = 218 +0.44YD 1 = 148 +0.19Y-1,0211 G = 283...

Question

Question

Answer 1

Answer #1

IS = LM at equilibrium

Y= 1485.30 - 2759.46(0.04) = 1375

C= 218 + 0.44(1375-226)=724

I= 148 + 0.19*1375 - 1021*0.04= 368

C+I+G = 724+368+283= 1375

Answer 2

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