IS LM , Macroeconomics

Assignment Help:
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.

Related Discussions:- IS LM

Determination of price level, P and Y are both endogenous variables and acc...

P and Y are both endogenous variables and according to the quantity theory of money we need P.Y = constant. If we divide both sides by P we get Y = constant / P. Because Y = Y D i

Medical goods or services, For which of the following medical goods or serv...

For which of the following medical goods or services is the income elasticity of demand largest? a. emergency services after a car accident b. measles shots c. physical ex

monetary account , link of monetary account with other sectors and its mea...

link of monetary account with other sectors and its meaning

INFLATION-UNEEMPLOYMENT TRADE-OFF UNDER ADAPTIVE EEX, Explain how inflation...

Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002

Describe effects of hours spent studying, Design a hypothetical ideal rando...

Design a hypothetical ideal randomized controlled experiment to study the effects of hours spent studying on performance on microeconomics exams. Suggest some impediments to implem

Aggregate Demand, According to liquidity preference theory, an increase in ...

According to liquidity preference theory, an increase in the price level causes the interest rate to: a.decrease, which decreases the quantity of goods and services demanded. b.inc

Neo-classical theory of trade, explain the neo-classical theory of trade an...

explain the neo-classical theory of trade and show the difference between this and the classical approach, as wellas the similarities

Actively-managed mutual funds, A sample of 60 mutual funds was taken and th...

A sample of 60 mutual funds was taken and the mean return in the sample was 13% with a standard deviation of 6.9%. The return on a particular index of stocks (against which the mut

What are the important aspects in tracking the macro-economy, What are the ...

What are the important aspects in tracking the macro-economy? Important aspects in tracking the macro-economy: a. How economists utilizes aggregate measures to track the pre

Explain the labor market in the cross model, Q. Explain the labor market in...

Q. Explain the labor market in the cross model? In cross model, both P and W are exogenous andconstant. Hence real wage is constant and it is not essentially equal to the equil

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