For an IS/LM model of an economy with the following equations: C = 200 + 0.8Yd I = 220 – 25i G bar = 240 TR bar= 150 T = .2Y L = .1Y – 3i M bar / P bar =125 The equilibrium interest rate and output combination is

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
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 9CQ
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For an IS/LM model of an economy with the following equations:

C = 200 + 0.8Yd

I = 220 – 25i

G bar = 240

TR bar= 150

T = .2Y

L = .1Y – 3i

M bar / P bar =125

The equilibrium interest rate and output combination is

   

(9.2, 1526)

   

(69.5, 2168.4)

   

(30, 1250)

   

(3, 125)

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