Suppose C = 9 + 0.75Y – 0.75T – 50r, I = 15 – 100r, T = 16, G = 21, and potential output is 125. r is theinterest percent in decimal form, e.g. 2% is 0.02, and the output gap below is the $ output gap (actual GDPpotential GDP).%3DWhat is these are IS equations for this economy?(Check all that apply. Some of these are equivalent so you should check more than one box.)output gap =7-600rOY- 125 = 7-– 600rOr = 0.22 – 0.0016667(output gap)Or= (Y - 132)/600

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Suppose C = 9 + 0.75Y – 0.75T – 50r, I = 15 – 100r, T = 16, G = 21, and potential output is 125. r is the interest percent in decimal form, e.g. 2% is 0.02, and the output gap below is the $ output gap (actual GDP - potential GDP). What is these are IS equations for this economy? (Check all that apply. Some of these are equivalent so you should check more than one box.) output gap = 7– 600r OY- 125 = 7 – 600r r= 0.22 – 0.0016667(output gap) = (Y - 132)/600

Suppose C = 9 + 0.75Y – 0.75T – 50r, I = 15 – 100r, T = 16, G = 21, and potential output is 125. r is the interest percent in decimal form, e.g. 2% is 0.02, and the output gap below is the $ output gap (actual GDP - potential GDP). What is these are IS equations for this economy? (Check all that apply. Some of these are equivalent so you should check more than one box.) output gap = 7– 600r OY- 125 = 7 – 600r r= 0.22 – 0.0016667(output gap) = (Y - 132)/600

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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