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3. Calculate the slope of the IS curve given the following two equations. (Hint: The IS curve is the relationship between Y and r, so you need to isolate Yt on one side.) C = 0.6(Y - G+) + 0.5(Y+1 - Gt+1) – 10r I = -20rt + At+1 - 0.2Kt Gt = G+1 = 10

3. Calculate the slope of the IS curve given the following two equations. (Hint: The IS curve is the relationship between Y and r, so you need to isolate Yt on one side.) C = 0.6(Y - G+) + 0.5(Y+1 - Gt+1) – 10r I = -20rt + At+1 - 0.2Kt Gt = G+1 = 10

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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3. Calculate the slope of the IS curve given the following two equations. (Hint: The IS curve is the relationship between Y and r, so you need to isolate Y; on one side.) C+ = 0.6(Y; – G+) + 0.5(Y+1 – G+1) – 10rt It = -20rt + At+1 – 0.2K{ Gt = G+1= 10
Transcribed Image Text:3. Calculate the slope of the IS curve given the following two equations. (Hint: The IS curve is the relationship between Y and r, so you need to isolate Y; on one side.) C+ = 0.6(Y; – G+) + 0.5(Y+1 – G+1) – 10rt It = -20rt + At+1 – 0.2K{ Gt = G+1= 10
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