Given the following: C(YT) = 200 +0.75(Y-T) I(r) = 80 - 20r L(r,Y) = Y − 90r G = 200 T = 75 M = 2500 P = 4 a) What is the exact expression for the IS curve (express Y in terms of r)? b) What is the exact expression for the LM curve (express Y in terms of r)? c) What is the equilibrium output level Y*?

Given the following: C(YT) = 200 +0.75(Y-T) I(r) = 80 - 20r L(r,Y) = Y − 90r G = 200 T = 75 M = 2500 P = 4 a) What is the exact expression for the IS curve (express Y in terms of r)? b) What is the exact expression for the LM curve (express Y in terms of r)? c) What is the equilibrium output level Y*?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 10SQP

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