Graph the is curve for economy, Microeconomics

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Graph the is curve for economy

Desired consumption and investment are

Cd= 4000-4000r+0.2Y
Id= 2400-4000r

As usual, Y is output and r is the real interest rate. Government purchases are 2000.

(a) Find the equilibrium value of the real interest rate if Y =10000.
(b) Find the equilibrium value of the real interest rate if Y = 10200.
(c) Graph the IS curve for this economy

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Microeconomics: Graph the is curve for economy

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Microeconomics: Graph the is curve for economy

Reference No:- TGS042489

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Gain required to recognize the contribution

Q : How would value goodwill that is obtained in way

Q : What portion of these costs should be allocated

Q : Gain or loss does realize on the formation of corporation

Q : Graph the is curve for economy

Q : Phase of handling cash receipts

Q : What should record the cost of the land and new building

Q : What real interest rate consistent with equilibrium in asset

Q : Break-even point in units problem

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Graph the is curve for economy

Reference No:- TGS042489

Recent Questions Asked Microeconomics

Q : Gain required to recognize the contribution

Q : How would value goodwill that is obtained in way

Q : What portion of these costs should be allocated

Q : Gain or loss does realize on the formation of corporation

Q : Graph the is curve for economy

Q : Phase of handling cash receipts

Q : What should record the cost of the land and new building

Q : What real interest rate consistent with equilibrium in asset

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