Solve for the goods market equilibrium
Course:- Business Economics
Reference No.:- EM13795863

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Consider a closed economy which can be characterized by the following equations: C = 400 + 0.8YD I = 600 + 0.1y- 1000r G = 300 T = 125 (M/P)d = 0.2Y-6000r (M/P)= 400 a. Solve for the goods market equilibrium and state the equation for the AD and IScurve. Draw both graphics. b. Solve for the money market equilibrium and LM and draw the graphics.

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