IS LM , Macroeconomics

C=Ca+.95(Y-T)
Ca=400-20r
T=1200 + .4Y
(M/P)^d = .35Y - 5r
(M^s/P)=2000
Ip=1500-20r
G=2200
NX=500-.06Y

a. Compute the multiplier
b. Derive the equation for Ap
c. Derive the equation for the IS Curve

d. Calculate the slope of the IS Curve
e. Derive the equation of LM Curve
f. Calculate the slope of the IS Curve
g. Calculate the equilibrium value for r
h. Calculate the equilibrium value for Y
i. Construct the IS and LM curves using the interest rates of 10, 11, 12, 13, 14, 15, 16, and 17
By using the information from answers a-h.
Posted Date: 11/1/2012 10:48:35 PM | Location : United States







Related Discussions:- IS LM , Assignment Help, Ask Question on IS LM , Get Answer, Expert's Help, IS LM Discussions

Write discussion on IS LM
Your posts are moderated
Related Questions
1. Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%. a. if the fed now purchases $125,000 worth of govt bonds from t

The Pigou effect: A) suggests that as prices fall and real money balances rise, consumers should feel less wealthy and spend less. B) suggests that as prices fall and real mo

factors that causes the shifts in balance of payments

Determine the current productivity results for the non-farming business sector and the manufacturing sector. Discuss recent productivity and cost trends and make predictions for th

Explain clearly the liquidity preference theory of interest propounded by j.m.keynes

THE PRODUCT MARKET Z=C+I+G C=a+bYd I=Io+I1Y-I2i Equilibrium condition, Y=Z, where Y represents output and Z is aggregate spending. THE FINANCIAL MARKET Md=MT+Mp MT=MTo+MT1Y Mp=Mpo

Q. Explain the problem involved in consumer price Index? To explain the problems involved in calculating CPI we consider MP3 players. If you measure the average price of MP3 pl

Determine Why banks raise their interest rates A way to explain why banks raise their interest rates is as follows. With higher overnight interest rates, it is more expensive fo

(Effects of Fiscal Policy) Recently some legislators have called for tax increases to reduce the federal budget deficit. Conservatives have countered that such tax increases could

why is credit multiplier lower than money multiplier