Consider a closed economy which can be characterized by the, Business Economics

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Consider a closed economy which can be characterized by the

Consider a closed economy which can be characterized by the following equations: C = 400 + 0.8YD I = 600 + 0.1y- 1000r G = 300 T = 125 (M/P)d = 0.2Y-6000r (M/P)= 400 a. Solve for the goods market equilibrium and state the equation for the AD and IScurve. Draw both graphics. b. Solve for the money market equilibrium and LM and draw the graphics.

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Business Economics: Consider a closed economy which can be characterized by the

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Business Economics: Consider a closed economy which can be characterized by the

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