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
Potatoes cost Janice $1 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the sec

Illustrate the circular flow of income and expenditure according to their models ( classical and keynesian)

Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs, and an industry that utilizes

Q. Explain about IS-LM-model? The key difference between the IS-LM model and the cross model is that nominal interest rate is exogenous in cross model on the other handit is en

(1) Based on the article, describe as best you can: (i) the reference group for the cost benefit analysis, (ii) the purpose of the study (i.e., what is the "project" in this

Only two identical firms i = A;B, each with marginal cost MCi = 40 and no fixed cost, operate in a market with demand: Q     p 1    160 2    120 3     90 4     70

The benefits of capitalism are that the governments have limited control over other business, which lets business compete.

Relate overnight rate with money supply When the overnight interest rate decreases, the money supply increases When the overnight interest rate increases, the money supply d

An antenna shown in Figure is to be adjusted from its current position to a new desired position by turning a potentiometer at an angle θ i (t) . The potentiometer converts the an

Robert's New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for t