In this exercise we are going to derive IS-LM model of Intermediate Macroeco- nomics mathematically. Goods market: oon atonborg ow wo Y=C+I+Go C = Co + b(Y-T) I = Io - ar T=tY ommer ous noilgque anoitonsil viquque qui vollot where Y, C, I, I,r are income, consumption, investment, taxes, and interest rate respectively, and Co, Io are some constants. Money market: men vi aboog hodnot asiliana M₁ = kY - Br Ms = Mo Ma and Ms are money demand and money supply equations and Mo is a constant.

In this exercise we are going to derive IS-LM model of Intermediate Macroeco- nomics mathematically. Goods market: oon atonborg ow wo Y=C+I+Go C = Co + b(Y-T) I = Io - ar T=tY ommer ous noilgque anoitonsil viquque qui vollot where Y, C, I, I,r are income, consumption, investment, taxes, and interest rate respectively, and Co, Io are some constants. Money market: men vi aboog hodnot asiliana M₁ = kY - Br Ms = Mo Ma and Ms are money demand and money supply equations and Mo is a constant.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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