EXERCISE 3 Given L = 0.20Y - 10i M = 200 C = 60+ 0.80Y d T = 100 1 = 150 - 2i G = 100. Mahidol University International College a) Find the equation for IS and LM b) Find equilibrium output, the rate of interest, and investment. c) Find new equilibrium output, rate of interest and investment when government spending increase from $100 to $120 d) Explain the changes/effects of economy when there is an increase government expenditure Aggregate demand part I 20

EXERCISE 3 Given L = 0.20Y - 10i M = 200 C = 60+ 0.80Y d T = 100 1 = 150 - 2i G = 100. Mahidol University International College a) Find the equation for IS and LM b) Find equilibrium output, the rate of interest, and investment. c) Find new equilibrium output, rate of interest and investment when government spending increase from $100 to $120 d) Explain the changes/effects of economy when there is an increase government expenditure Aggregate demand part I 20

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 2WNG

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