I = 900-50rNX = 500 - 50€M/P = Y-125rG = 500T = 500M = 6000P = 3r* = 8a. Derive and graph the IS and LM curves. Use theaccompanying diagram to graph the IS and LM curves byplacing the endpoints at the correct location, then place poA at the equilibrium interest rate and level of income.IS: Y =C = 800+0.8(Y-T)LM: Y=equilibirum e:equilibrium Y:302826equilibrium NX:24b. Calculate the equilibrium exchange rate, level of income,and net exports.2018161412108642IS-LM Graph%ISLM02,000 3.000 4,000 5,000 6.000 7,000 8.000 9,000Y

In economics, "IS" and "LM" refer to two curves that represent the equilibrium conditions in the…

IS: Y= C = 800+ 0.8(Y-T) I = 900-50r NX = 500 - 50€ M/P = Y-125r G = 500 T = 500 M = 6000 P = 3 r* = 8 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place po A at the equilibrium interest rate and level of income. LM: Y= equilibirum e: equilibrium Y: U equilibrium NX: 30 25 24 20 16 16 14 b. Calculate the equilibrium exchange rate, level of income, and net exports. 12 10 8 6 4 2 2.000 3.000 % IS-LM Graph 4,000 5,000 Y 15 6.000 7,000 LM 8.000 9,000

IS: Y= C = 800+ 0.8(Y-T) I = 900-50r NX = 500 - 50€ M/P = Y-125r G = 500 T = 500 M = 6000 P = 3 r* = 8 a. Derive and graph the IS and LM curves. Use the accompanying diagram to graph the IS and LM curves by placing the endpoints at the correct location, then place po A at the equilibrium interest rate and level of income. LM: Y= equilibirum e: equilibrium Y: U equilibrium NX: 30 25 24 20 16 16 14 b. Calculate the equilibrium exchange rate, level of income, and net exports. 12 10 8 6 4 2 2.000 3.000 % IS-LM Graph 4,000 5,000 Y 15 6.000 7,000 LM 8.000 9,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The formula for the is curve can be derived from the formula Y = [CO+MPC(Y-T)]+1+G. When the IS curve is derived, I and G are assumed constant and Y varies based on the interest rate r. Assuming that CO=50B, MPC = 80, T=200B, I = 120B-10B (r), and G = 250B, the derived IS curve is (A),Y=1,300B - 50B (r) B ) Y=1, 400B +40B (r) C) Y=1, 300B +50B (r) D) Y=1, 400B - 50B (r) Using the IS formula you calculated in the problem above, what is the value of Y if r = 10(10%) ? A) 1,000B B) 900B C) 800B D) 700B Using the IS formula that you derived above, what is the value of Y ifr = 12 (12%) ? A) 1,000B B) 900B C) 800B D) 700B Assume that the ,M,d money demand function is (=Y-50r, where is the interest rate. The money supply M is 2,000B and the price level P is 4. Use this information to derive the LM curve function/formula. The LM function/formula is A ) Y=650B + 50B (r) B) Y = 650B +40B (r) C) Y = 500B-60B (r) D) Y = 500B + 50B (r) D) 50. ၁ The formula for the IS curve can be derived from the…
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Hello, can you explain how I’m supposed to figure this out? How am I supposed to know which Qs and Qd correlate?