Assume that an economy is characterized by the following equations:\[ C = 100 + \frac{2}{3}(Y - T) \]\[ T = 300 \]\[ G = 500 \]\[ I = 800 - \frac{50}{3}r \]\[ \frac{M^d}{P} = 0.5Y - 50r \]Tasks:a. Write the numerical IS curve for the economy.b. Write the numerical LM curve for the economy, assuming $ P = 1 $ and $ M^s = 1,200 $.c. Solve for the equilibrium values of $ Y $ and $ r $.

here we find the numerical IS and numerical LM curve for the economy by following method as below;

Assume that an economy is characterized by the following equations: C = 100 + (2/3XY -T) T = 300 G = 500 I= 800- (50/3)r MIP=0.5Y-50r a. Write the numerical IS curve for the economy. b. Write the numerical LM curve for the economy, assuming P-1 and M'=1,200. c. Solve for the cquilibrium values of Y and r.

Assume that an economy is characterized by the following equations: C = 100 + (2/3XY -T) T = 300 G = 500 I= 800- (50/3)r MIP=0.5Y-50r a. Write the numerical IS curve for the economy. b. Write the numerical LM curve for the economy, assuming P-1 and M'=1,200. c. Solve for the cquilibrium values of Y and r.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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