What is the lm and is curve, Basic Statistics

Assignment Help:

Consider an economy specified by the following:

      Y = PE = C + I + G + NX                            (Income identity)

      C = 400 + 0.9YD                                      (Consumption)

      I = 200 - 1,800i                                        (Investment)

NX = 200 - 0.1Y - 200i                                      (Net exports)

MD = (0.8Y - 3,000i)                                       (Money demand)

Also assume that government spending G = $200, the tax rate t = 0.3333, and the money supply MS = $1,104 (and assume the price level is constant at P = 1).

a.  What is the IS curve?

b.  What is the LM curve?

c.  What are the values of income (Y) and the interest rate (i) when the IS-LM model is in equilibrium?

 

 


Related Discussions:- What is the lm and is curve

Calculate income and substitution effects, In November 2010, every Mzumbe U...

In November 2010, every Mzumbe University student had an income of 150000/= per month,facing the price of meal (X) 1000/= and average price of other goods (Y) 1000/=.The initial ut

Regarding trial balance, does interest realized come under debit or credit ...

does interest realized come under debit or credit side of trial balance pleases i need answer

Describe time cost of working alters of budget constraint, Suppose that an ...

Suppose that an individual has unearned income of $V and can choose how many hours she works per week at a wage of $w per hour.  Assume that she has a total of 110 hours of time to

Spectral Hydrogen Atom, Long before Bohr gave his theory of hydrogen atom, ...

Long before Bohr gave his theory of hydrogen atom, various scientists had observed experimentally, the spectral series of hydrogen atom. Bohr offered a theoretical explanation of t

Volume, I have a box that measures 3m x 3m x 3m. What is the volume of the...

I have a box that measures 3m x 3m x 3m. What is the volume of the cube?

Identification of null and alternative hypotheses, A politician claims that...

A politician claims that the mean salary for managers in his state is more than national mean $82,000.  The salaries (in dollars) for a random sample of 30 managers in the state ar

Define why equipment show up on a profit and loss statement, Define why Equ...

Define why Equipment show up on a profit and loss statement? The buy of devices that will be used in a business is not revealed on the revenue and reduction declaration. Howeve

Compute the outlier diagnostics, Use the following four data sets for probl...

Use the following four data sets for problem 1.  Be aware that this is a very interesting series of data sets with some special properties. I do not have data files for these data,

Calculate the probability of coin, Q1. If you throw a coin 5 times, what is...

Q1. If you throw a coin 5 times, what is the probability of: - throwing 5 heads - throwing 4 tails - throwing 3 heads and 2 tails Q2. Construct a tree diagram to verify your ans

Probability, A certain manufactured item is visually inspected by two diffe...

A certain manufactured item is visually inspected by two different inspectors. When a defective item comes through the line, the probability that it gets by the first inspector is

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd