User Account

All Pages

Graph the is curve on an appropriately labeled graph

Assignment Help Microeconomics
Reference no: EM132512230

The following equations describe a closed economy.

Y = C + I + G

C = 120 + 0.5 (Y- T)

I = 100 - 10r

G = 50

T= 40

(M/P)d = Y - 20r

M = 600

P = 2

a. From the above list, use the relevant set of equations to derive the IS curve. Graph the IS curve on an appropriately labeled graph.

b. From the above list, use the relevant set of equations to derive the LM curve. Graph the LM curve on the same graph you used in part (b).

c. What are the equilibrium level of income and the equilibrium interest rate? Show this on your graph.

Reference no: EM132512230

Questions Cloud

Make the necessary journal entries for the years ending june : Make the necessary journal entries for the years ending 30 June 2019, 30 June 2020 and 30 June 2021 to record the acquisition, depreciation.
Legal paternalism : List some laws justified by legal paternalism. Provide the rationale for such laws, as well as opposing arguments.
Graph the supply and demand for real money balances : Suppose that the money demand function is (M/P)d = 1000 - 100r, where r is the interest rate in percent. The money supply M is 1,000 and the price level P
Evaluate what is the return : At the beginning of the year you bought them for $4.25 and during the year a dividend of 21.25 cents per share was paid. What is the return?
Graph the is curve on an appropriately labeled graph : From the above list, use the relevant set of equations to derive the IS curve. Graph the IS curve on an appropriately labeled graph.?
Business law-case study analysis : Peter advertised widely in the media, offering various subscription deals to ‘Vision', his politics magazine.
What types of decisions external users are likely to make : What types of decisions external users are likely to make, based on the quantitative or qualitative information on a general purpose report?
New short-run equilibrium : Use the Mundell-Fleming model to illustrate graphically your proposed policy. Be sure to label: i) the axes; ii) the curves; iii) the initial equilibrium level
What is the expected rate of return on the stock : 15 % probability of a boom, a 75 % chance of a normal economy, and a 10 % chance of a recession. What is your expected rate of return on this stock?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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