Cd= 200+.8Y - 500r Id= 200 – 500r Real interest rate r in the equilibrium equals .2. What is the government spending G of this economy so that its full employment output of Y is 1000? Suppose M bar=8000 and r=.2. L(Y,r)=.75Y-250r. What is the price level P in this economy for Y=1000? Please draw your IS-LM curves in your graph. Use the graph to illustrate what may happen if the company had an adversary price shock.
Cd= 200+.8Y - 500r Id= 200 – 500r Real interest rate r in the equilibrium equals .2. What is the government spending G of this economy so that its full employment output of Y is 1000? Suppose M bar=8000 and r=.2. L(Y,r)=.75Y-250r. What is the price level P in this economy for Y=1000? Please draw your IS-LM curves in your graph. Use the graph to illustrate what may happen if the company had an adversary price shock.
Chapter19: The Keynesian Model In Action
Section: Chapter Questions
Problem 8SQP
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Cd= 200+.8Y - 500r
Id= 200 – 500r
- Real interest rate r in the equilibrium equals .2. What is the government spending G of this economy so that its full employment output of Y is 1000?
- Suppose M bar=8000 and r=.2. L(Y,r)=.75Y-250r. What is the
price level P in this economy for Y=1000? - Please draw your IS-LM
curves in your graph. Use the graph to illustrate what may happen if the company had an adversary price shock.
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