MACROECONOMIC (b) Sovle the above set of equations to obtain the equation of IS curve in the form ofr = f(Y). [Remark: segregate components that affect the gradients and theintercept] Given the following set of equations for an economy model:Consumption expenditureInvestmentC = A+b YDI = I* - Ir|Tax RevenueTT* + tYImportDisposable IncomeI*, G*, X* and M* are autonomous investment, government spending, autonomousexport dan autonomous import, respectively.MM* + mYYD = Y - T(a) Sovle the above set of equations to obtain the equation of IS curve in the form ofY = f(r).

Y = C + I +G + M Y = (A* + b YD) + I* -lr + M Y = A* + b (Y - T* - tY ) + I* - lr + M* + mY Y = A*…

Given the following set of equations for an economy model: Consumption expenditure Investment C = A+b YD I = I* - Ir %3D Tax Revenue T = T* + tY %3D 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 (a) Sovle the above set of equations to obtain the equation of IS curve in the form of Y = f(r).

Given the following set of equations for an economy model: Consumption expenditure Investment C = A+b YD I = I* - Ir %3D Tax Revenue T = T* + tY %3D 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 (a) Sovle the above set of equations to obtain the equation of IS curve in the form of Y = f(r).

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 7E

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