Given the following information. C = 100+ 0.75Yd, (dengan, Yd=Y-T) 1 = 240 - 600r G = 50 T = 30 a. Derive the equation for IS curve. b. Calculate the equilibrium level of income if the interest rate is 8 percent. c. What is the impact on the equilibrium level of income if the government runs an expansionary fiscal policy by adding G by 200 units?

Given the following information. C = 100+ 0.75Yd, (dengan, Yd=Y-T) 1 = 240 - 600r G = 50 T = 30 a. Derive the equation for IS curve. b. Calculate the equilibrium level of income if the interest rate is 8 percent. c. What is the impact on the equilibrium level of income if the government runs an expansionary fiscal policy by adding G by 200 units?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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