Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 04 Apr 2018 My Price 7.00

desired investment

Consider the following economy:

a. Suppose that T = G = 450 and that M = 9000. Find an equation describing the IS curve. (Hint: Set desired national saving and desired investment equal, and solve for the relationship between r and Y.) Find an equation describing the LM curve

b. Suppose that T = G = 450 and that M = 4500. What is the equation for the aggregate demand curve now? What are the general equilibrium values of output, consumption, investment, the real interest rate, and price level? Assume that full employment output  is fixed.

c. Repeat Part (b) for T = G = 330 and M = 9000

Answers

(5)
Status NEW Posted 04 Apr 2018 07:04 PM My Price 7.00

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