QUESTION 2For an IS/LM model of an economy with the followingequations:C = 200 + 0.8Yd| = 220 – 25i%D= 240= 150T= .2YL = .1Y – 3i125The equations for the IS and LM (to two decimal places) areY= 2168.4 – 69.5i and Y = 3i + 125Y= 780 – 25i and Y = 30i + 1250%3DY= 2168.4 – 69.5i and Y = 30i + 1250Y= 2168.4 + 69.5i and Y = 30i – 1250

*Answer: Fiscal policy means the government made their expenditure to construct the roads,…

Answered: M model of an economy with the…

M model of an economy with the following .8Yd ons for the IS and LM (to two decimal places 2168.4 – 69.5i and Y = 3i + 125 780 – 25i and Y = 30i + 1250

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 12CQ

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