CThe following equations describe an economy C = 100 + 0.75 Y, I= 50 – 25i where C' is aggregate consumption ,Y is disposable income, I is aggre gate investment, T is taxes, G is go vernment purchases and i is the int erest rate. Derive the IS curve for th T= G= 50 e economy.

CThe following equations describe an economy C = 100 + 0.75 Y, I= 50 – 25i where C' is aggregate consumption ,Y is disposable income, I is aggre gate investment, T is taxes, G is go vernment purchases and i is the int erest rate. Derive the IS curve for th T= G= 50 e economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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