For an economy the following functions have been given: C = 100 + 0.8Y S= -100 + 0.2Y I= 120 – 5r M, = 120 Ma = 0.2Y – 5r Calculate the following: 5.1.1. IS equation 5.1.2. LM equation 5.1.3. Equilibrium level of income

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Solve 5.1.1, 5.1.2 and 5.1.3 earky

For an economy the following functions have been given:
C = 100 + 0.8Y
S= -100 + 0.2Y
I= 120 – 5r
M, = 120
Ma = 0.2Y – 5r
Calculate the following:
5.1.1. IS equation
5.1.2. LM equation
5.1.3. Equilibrium level of income
Transcribed Image Text:For an economy the following functions have been given: C = 100 + 0.8Y S= -100 + 0.2Y I= 120 – 5r M, = 120 Ma = 0.2Y – 5r Calculate the following: 5.1.1. IS equation 5.1.2. LM equation 5.1.3. Equilibrium level of income
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