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).

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

MACROECONOMIC

(b) Sovle the above set of equations to obtain the equation of IS curve in the form of
r = f(Y). [Remark: segregate components that affect the gradients and the
intercept]

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
(a) Sovle the above set of equations to obtain the equation of IS curve in the form of
Y = f(r).

Branch of economics that analyzes the behavior and performance of an economy as a whole. It focuses on the study of aggregates and evaluates changes related to unemployment, gross domestic product, inflation, monetary and fiscal policies of the government.

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