Write the numerical aggregate demand curve for this economy

Assignment Help Business Economics

Reference no: EM131163067

Assume that an economy is characterized by the following equations: C = 100 + (2/3)(Y – T) T = 600 G = 500 I = 800 – (50/3)r Ms/P = Md/P = 0.5Y – 50r a. Write the numerical IS curve for the economy, expressing Y as a numerical function of G, T, and r. b. Write the numerical LM curve for this economy, expressing r as a function of Y and M/P. c. Solve for the equilibrium values of Y and r, assuming P = 1.0 and M = 1,200. How do they change when P = 2.0? Check by computing C, I, and G. d. Write the numerical aggregate demand curve for this economy, expressing Y as a function of G, T, and M/P.

Reference no: EM131163067

Questions Cloud

What do you think are the limits of human freedom : What do you think are the limits of human freedom? What might make it IMPOSSIBLE for a person to keep a secret? (You may consider historical examples in your answer to this question.)

Describe the ideal mannerism of a paralegal : Describe the ideal mannerism of a paralegal. - Imagine and explain the first case and investigation you will conduct after you are employed by a law firm.

What social needs and behaviors must be studied today : Armed with knowledge we have learned to date about human behavior and using that as your foundation, discuss what social needs and behaviors must be studied today.

Explain the ethical issues faced by the organization : Explain the ethical issues faced by the organization, summarize the legal and regulatory issues faced by the organization, and then summarize the organization's corporate social responsibility

Write the numerical aggregate demand curve for this economy : Assume that an economy is characterized by the following equations: C = 100 + (2/3)(Y – T) T = 600 G = 500 I = 800 – (50/3)r Ms/P = Md/P = 0.5Y – 50r. Write the numerical aggregate demand curve for this economy, expressing Y as a function of G, T, an..

Malaria is contagious disease spread by mosquitoes : Malaria is a contagious disease spread by mosquitoes. Mosquitoes bite an infected person and pass the disease along by biting an uninfected person. In developing nations, the spread of malaria can be diminished if people sleep underneath mosquito net..

Create a gantt chart that displays 36 months : Create a Gantt chart that displays 36 months (using the Office Timeline tool or any other tool to produce a Gantt chart) for a cosmetic manufacturing company expanding into a new market . Be sure to :

An alternative has discounted project cost : An alternative has a discounted project cost of $4,185,000 with no salvage value. The estimate was in constant dollars and the discounting used mid-year factors. While the period of analysis is 5 years, the alternative only provides benefits for the ..

Presentation on the anti- kickback law : Prepare a 3-5 slide PowerPoint presentation on the Anti- Kickback Law. Provide 3-5 references. APA format.

User Account

All Pages