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Question 3 The goods market for a three-sector economy is in equilibrium where, Y=C+I+G. The money market is in equilibrium when supply of money Ms equals demand for money Md. Given C21+0.05Y, I = 20-50i, G = 100, Ms = 100, Md = 0.6Y+62 - 100i derive the IS and LM equations as i = f(Y), and solve for i and Y at equilibrium.

Question 3 The goods market for a three-sector economy is in equilibrium where, Y=C+I+G. The money market is in equilibrium when supply of money Ms equals demand for money Md. Given C21+0.05Y, I = 20-50i, G = 100, Ms = 100, Md = 0.6Y+62 - 100i derive the IS and LM equations as i = f(Y), and solve for i and Y at equilibrium.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 3 The goods market for a three-sector economy is in equilibrium where, Y=C+I+G. The money market is in equilibrium when supply of money Ms equals demand for money Md. Given C21+0.05Y, I = 20-50i, G = 100, Ms = 100, Md = 0.6Y+62 - 100i derive the IS and LM equations as i = f(Y), and solve for i and Y at equilibrium.
Transcribed Image Text:Question 3 The goods market for a three-sector economy is in equilibrium where, Y=C+I+G. The money market is in equilibrium when supply of money Ms equals demand for money Md. Given C21+0.05Y, I = 20-50i, G = 100, Ms = 100, Md = 0.6Y+62 - 100i derive the IS and LM equations as i = f(Y), and solve for i and Y at equilibrium.
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