Consider the following numerical example of the IS-LM model: C = 191 +0.49YD / = 155+0.24Y-1,168/ G = 214 T = 171 i = 0.04 Derive the IS relation. (Hint: You want an equation with Y on the left side of the equation and everything else on the right.) Y=-. (Round your calculations of the intercept and slope terms to two decimal places.) The central bank sets an interest rate of 4%. In the equations given above, this decision is represented as i = known as the relation. ven this model's IS and LM equations, the equilibrium real output, Y, is. (Round your response to the nearest integer.) Use the expression given below along with the values of equilibrium real output and the interest rate to determine the evel of the real money supply. The real morby supply is M an = 2.4Y-8,477i (Round your response to the nearest integer.)
Consider the following numerical example of the IS-LM model: C = 191 +0.49YD / = 155+0.24Y-1,168/ G = 214 T = 171 i = 0.04 Derive the IS relation. (Hint: You want an equation with Y on the left side of the equation and everything else on the right.) Y=-. (Round your calculations of the intercept and slope terms to two decimal places.) The central bank sets an interest rate of 4%. In the equations given above, this decision is represented as i = known as the relation. ven this model's IS and LM equations, the equilibrium real output, Y, is. (Round your response to the nearest integer.) Use the expression given below along with the values of equilibrium real output and the interest rate to determine the evel of the real money supply. The real morby supply is M an = 2.4Y-8,477i (Round your response to the nearest integer.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the following numerical example of the IS-LM model:
C = 191+0.49YD
/ = 155+0.24Y-1,168/
G = 214
T = 171
i = 0.04
Derive the IS relation. (Hint: You want an equation with Y on the left side of the equation and everything else on the
right.)
Y=-i. (Round your calculations of the intercept and slope terms to two decimal places.)
The central bank sets an interest rate of 4%. the equations given above, this decision is represented as i =
known as the relation.
Given this model's IS and LM equations, the equilibrium real output, Y, is
integer.)
The real money supply is
Use the expression given below along with the values of equilibrium real output and the interest rate to determine the
level of the real money supply.
M
P
= 2.4Y-8,477i
and is
(Round your response to the nearest integer.)
(Round your response to the nearest
V
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