Q1. I want to know how to give tell to someone about ceteris paribus when he has a job working at a fast food restaurant. Illustrate what would be the best advice to give him knowing which this is his only source of income?
Q2. Assume which the equation for autonomous planned spending, Ap` is Ap = 6,200 - 200r and the value of the multiplier, k is 2.5
(a) Derive the equation for the IS curve, Y = kAp. Graph the IS curve for interest rates between 0 and 8, with intervals of one-half of a percentage point.
Y = 2.5(6,200-200r)
Y = 15,000