C = 2,000+ 0.75 (Y-T); I = 12,000 - 1,500 r; G = 23,000; X 4,000; M = 5,000+ 0.1 Y; T = 5,000+ 0.20Y; Md = 0.50 Y 3,500 r; Ms = 31400; Yp = 63,400 (a) The IS equation for this economy is: Y = (b) The LM equation for this economy is: Y = +

C = 2,000+ 0.75 (Y-T); I = 12,000 - 1,500 r; G = 23,000; X 4,000; M = 5,000+ 0.1 Y; T = 5,000+ 0.20Y; Md = 0.50 Y 3,500 r; Ms = 31400; Yp = 63,400 (a) The IS equation for this economy is: Y = (b) The LM equation for this economy is: Y = +

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Economics...

The economy of Clintonia has the following
macroeconomic relationships:
C = 2,000+ 0.75 (Y-T); I = 12,000 - 1,500 r; G = 23,000; X =
4,000; M = 5,000+ 0.1 Y; T = 5,000+ 0.20Y; Md = 0.50 Y
3,500 r; Ms = 31400; Yp = 63,400
(a) The IS equation for this economy is: Y =
(b) The LM equation for this economy is: Y =
_r.
+
r.

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