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Given the following information. C = 100 + 0.75Yd , (dengan, Yd = Y − T) I = 240 − 600r G = 50 T = 30 Derive the equation for IS curve. Calculate the equilibrium level of income if the interest rate is 8 percent. What is the impact on the equilibrium level of income if the government runs an

Given the following information. C = 100 + 0.75Yd , (dengan, Yd = Y − T) I = 240 − 600r G = 50 T = 30 Derive the equation for IS curve. Calculate the equilibrium level of income if the interest rate is 8 percent. What is the impact on the equilibrium level of income if the government runs an

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Given the following information.

C = 100 + 0.75Yd , (dengan, Yd = Y − T)

I = 240 − 600r

G = 50

T = 30

  1. Derive the equation for IS curve.
  2. Calculate the equilibrium level of income if the interest rate is 8 percent.
  3. What is the impact on the equilibrium level of income if the government runs an

expansionary fiscal policy by adding G by 200 units?

  1. What is the impact on the IS curve if the government increases tax to 80 units?
  2. What are the factors other than the fiscal policy factors that can cause the IS

curve to shift?

 

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