II. Problem Solving: An economy shows the following features: (All figures are in Php) Consumption .C = 50+0.9(Y –T) Tax Revenue.T = 100 %3! Investment -..I =150– 5i Govt Expenditures ...G = 100 Money Demand.…L = 0.2Y – 10i| Money Supply...M = 100 Exports.…X = 20 Im ports ... M = 10+0.10Y 1. Obtain the IS and LM equations of the economy. 2. Find the equilibrium income and the rate of interest. 3. Is the economy operating in a trade deficit? How much?

II. Problem Solving: An economy shows the following features: (All figures are in Php) Consumption .C = 50+0.9(Y –T) Tax Revenue.T = 100 %3! Investment -..I =150– 5i Govt Expenditures ...G = 100 Money Demand.…L = 0.2Y – 10i| Money Supply...M = 100 Exports.…X = 20 Im ports ... M = 10+0.10Y 1. Obtain the IS and LM equations of the economy. 2. Find the equilibrium income and the rate of interest. 3. Is the economy operating in a trade deficit? How much?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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