Given the following set of equations for an economy model: C = A+b YD I = I* - Ir T = T* + tY Consumption expenditure Investment Tax Revenue Import Disposable Income I*, G*, X* and M* are autonomous investment, government spending, autonomous export dan autonomous import, respectively. M = M* + mY YD = Y - T
Given the following set of equations for an economy model: C = A+b YD I = I* - Ir T = T* + tY Consumption expenditure Investment Tax Revenue Import Disposable Income I*, G*, X* and M* are autonomous investment, government spending, autonomous export dan autonomous import, respectively. M = M* + mY YD = Y - T
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Given the following set of equations for an economy model:
Consumption expenditure
Investment
C = A+b YD
I = I* - Ir
|
Tax Revenue
T
T* + tY
Import
Disposable Income
I*, G*, X* and M* are autonomous investment, government spending, autonomous
export dan autonomous import, respectively.
M
M* + mY
YD = Y - T](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb39a676f-e8c6-40bf-b652-8cc8feae8b25%2F0e2445c4-e6ba-46e3-a3d3-fe94447a394f%2F5661ke_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Given the following set of equations for an economy model:
Consumption expenditure
Investment
C = A+b YD
I = I* - Ir
|
Tax Revenue
T
T* + tY
Import
Disposable Income
I*, G*, X* and M* are autonomous investment, government spending, autonomous
export dan autonomous import, respectively.
M
M* + mY
YD = Y - T
![Based on the derived equation for IS curve, sketch the IS curve in Figure 1 and
indicate clearly the components of IS curve affect the gradient and the intercept for
y-axis (that is, the axis for r).
FIGURE 1
Y](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb39a676f-e8c6-40bf-b652-8cc8feae8b25%2F0e2445c4-e6ba-46e3-a3d3-fe94447a394f%2Fuy4hl98_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Based on the derived equation for IS curve, sketch the IS curve in Figure 1 and
indicate clearly the components of IS curve affect the gradient and the intercept for
y-axis (that is, the axis for r).
FIGURE 1
Y
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