Question #37328

Consider the following IS/LM model for a closed economy
C=400+0.4yd ,I=200+0.3y-2000i, G=360,T=400 ,m/p=4y-100000i
ms=2600 (10 marks)
i. Derive the IS equation
Y = C + I + G
ii. Derive the LM equation
iii. Solve for equilibrium real output
iv. Solve for the equilibrium interest rate
v. Solve for equilibrium value of consumption and investment
An open macroeconomic model is represented parametrically as follows

Expert's answer

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Unfortunately, your question requires a lot of work and cannot be done for free. Please submit it with all requirements as an assignment to our control panel and we'll assist you.

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