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Short Economics Exam Revision Question, having difficulty with it! Can anyone help me out?
The following equations describe an economy
C = 0.8Yd
I = 220 – 25i
G bar = 440
TR bar = 150
T = .2Y
L = .1Y – 3i
M bar/P bar = 120
(a) Define the IS curve. Using the above data, derive the equation for the IS curve.
(b) What is the general equation for the LM curve? In this example, what is the equation for the LM curve?
(c) Calculate the equilibrium level of income and interest rates.
Please help. I'm not great at Economics.
2 Answers
- ?Lv 45 years ago
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