Business, 21.04.2020 18:08, neariah24

Y = C + I + G C = 120 + 0.5(Y – T) I = 100 – 10r G = 50 T = 40 L(r, Y) = Y – 20r M = 600 P = 2 a. Using the information above, derive the equation for the IS curve. b. Using the information above, derive the equation for the LM curve. c. What are the equilibrium levels of income and interest rate

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Y = C + I + G C = 120 + 0.5(Y – T) I = 100 – 10r G = 50 T = 40 L(r, Y) = Y – 20r M = 600 P = 2 a. Us...