User Account

All Pages

Derive the equation for the is curve

Assignment Help Microeconomics
Reference no: EM132473279

Consider the following IS - LM model:

C = 200 + 0.25YD;

I = 150 + 0:25Y - 1000i

G = 250;

T = 200;

(M/P)d = 2Y - 8000i

(M/P) = 1600

  1. Derive the equation for the IS curve (Hint: You want an equation with Y on the left-hand side and all else on the right).
  2. Derive the equation for the LM curve
  3. Solve for equilibrium real output
  4. Solve for the equilibrium interest rate
  5. Solve for the equilibrium values of C and I, and verify the value you obtained for Y by adding up C, I and G.
  6. Now, suppose that money supply increases to M/P = 1840. Solve for Y , i, C and I, and explain in words the effects of expansionary monetary policy.
  7. Set M/P equal to the initial value of 1600. Now suppose government spending increases to G = 400. Summarize the effects of expansionary fiscal policy on Y , i and C.

Reference no: EM132473279

Questions Cloud

One person benefits and that the other person loses : When two individuals enter into an exchange, you can be sure that one person benefits and that the other person loses.
Profit as a measure of monopoly power : In order to protect consumers from predatory business practices, governments in open-market economies often establish antitrust laws.
Give an example of a trade that makes ross and rachel : By how much would the existence of a market increase total production of each good by allowing full specialization according to comparative advantage?
Price elasticity of demand for car in market : What is the price elasticity of demand for this car in this market? Given your answer, explain why it would be wise or unwise to increase the price.
Derive the equation for the is curve : Derive the equation for the IS curve (Hint: You want an equation with Y on the left-hand side and all else on the right). Derive the equation for the LM curve
Identify all of the subgame-perfect pure-strategy : Identify all of the pure-strategy Nash equilibria in this game. Identify all of the subgame-perfect pure-strategy Nash equilibria in this game.
Discuss managed care role in promoting health : Discuss the impact managed care has on the access, financing, and delivery of health care in the United States. Discuss managed care's role in promoting health.
Discuss the implications related to mental health : Breif discussion of some of the implications related to mental health and social work practice that you see arising from the book.
What is the payoff function for player : Find the pure strategy Nash equilibria under the assumption that all participants are fully rational and only interested in their own earnings.

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the after tax npw of this endeavor for the company

A manufacturing company spends $400,000 for the purchase and installation of a fully automated. Calculate the after tax NPW of this endeavor for the company.

  Part 1 - choice under uncertaintylet us assume that your

part 1 - choice under uncertaintylet us assume that your utility function is given by u nbspradici . you have been

  How small or failing firms factors may increase difficulty

These two questions related to Economics and they are about trade restrictions such as quota, government imposed flooring, subsidies given by governments for exports by domestic markets, etc.

  If you used first-price sealed bid auction and optimal

you are considering auctioning a leonardo da vinci original sketch. you entice four bidders to come to your auction.

  Write a paper about your most significant learning reflect

write a 3-4 page paper about your most significant learning(s) Reflect on the COURSE OBJECTIVES AND STUDENT LEARNING OUTCOMES Consider.

  Show the effect of the subsidy

Suppose policy makers give bee producers a set subsidy of s = 11cents per jar of honey. Use a well labelled diagram to show the effect of the subsidy on

  Make table of the recipient of the signal

Broadcast television and broadcast radio send out signals that can be received by an infinite number of receivers without reducing the quality of the reception.

  Determining perpetual and the periodic inventory systems

Describe the perpetual and the periodic inventory systems. How are they different? Are there circumstances in which one system is better than the other?

  Find the marginal revenue generated by unit

When a monopolist produces an additional unit, the marginal revenue generated by that unit must be above the price because the output effect outweighs.

  What is equivalent present worth for buying the bulldozer

A construction company has an option to purcha and a certain bulldozer for $110,000 at any time between now and 4 years from now.

  Derive an expression for the total effect of a change in pa

A consumer spends all her income on the two goods A and B. The quantity of good A bought is determined by the demand function QA = f(PA, PB,M) where PA and PB.

  What are the annual sales of this product

Write a paper describing a product that is exported from Washington state.( I would like to be apples)Here's a link to a list of the state's top exports.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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