QUESTION 2For an IS/LM model of an economy with the followingequations:C = 200 + 0.8Yd| = 220 – 25i%D= 240= 150T= .2YL = .1Y – 3i125The equations for the IS and LM (to two decimal places) areY= 2168.4 – 69.5i and Y = 3i + 125Y= 780 – 25i and Y = 30i + 1250%3DY= 2168.4 – 69.5i and Y = 30i + 1250Y= 2168.4 + 69.5i and Y = 30i – 1250

*Answer: Fiscal policy means the government made their expenditure to construct the roads,…

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M model of an economy with the following .8Yd ons for the IS and LM (to two decimal places 2168.4 – 69.5i and Y = 3i + 125 780 – 25i and Y = 30i + 1250

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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