[Economics] A question relate to IS and LM curves and the equilibrium :) 5.A small open economy is described by the following equations:C = 40 + 0.8(Y – T)I = 200 - 15rNX300 - 40eM/p = 2Y - 50rG = 300, T = 300, M = 4000, P = 4 and r* = = 5(a) Derive and graph the IS* and LM*curves.(b) Find the equilibrium level of Y, e and NX.-

The equilibrium exchange rate means the exchange rate at which the demand for a currency equals its…

5. A small open economy is described by the following equations: 40+0.8(YT) C = I = 200-15r NX = = 300 - 40e M/p=2Y - 50r G = 300, T = 300, M = 4000, P = 4 and r* = 5 (a) Derive and graph the IS* and LM*curves. (b) Find the equilibrium level of Y, e and NX.

5. A small open economy is described by the following equations: 40+0.8(YT) C = I = 200-15r NX = = 300 - 40e M/p=2Y - 50r G = 300, T = 300, M = 4000, P = 4 and r* = 5 (a) Derive and graph the IS* and LM*curves. (b) Find the equilibrium level of Y, e and NX.

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Question

[Economics] A question relate to IS and LM curves and the equilibrium :)

5.
A small open economy is described by the following equations:
C = 40 + 0.8(Y – T)
I = 200 - 15r
NX
300 - 40e
M/p = 2Y - 50r
G = 300, T = 300, M = 4000, P = 4 and r* = = 5
(a) Derive and graph the IS* and LM*curves.
(b) Find the equilibrium level of Y, e and NX.
-

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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