Suppose the following equations reflect a particular economy. C = 15 + 0.9(Y – T) I = 5 - 3r G = 5,T = 6 r = 2+ 1.5n + 0.05Y n = 2 Find the equation for the IS curve such that Y f(r) Find the equation for the MP curve such that Y = f(r) Find the equilibrium short-run level of real GDP and real interest rates.

Suppose the following equations reflect a particular economy. C = 15 + 0.9(Y – T) I = 5 - 3r G = 5,T = 6 r = 2+ 1.5n + 0.05Y n = 2 Find the equation for the IS curve such that Y f(r) Find the equation for the MP curve such that Y = f(r) Find the equilibrium short-run level of real GDP and real interest rates.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 14QP

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