Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 5CQQ
Related questions
Question
Explain various causes of disequilibrium in the Balance of Payment (BOP)
2. Using suitable illustrations, distinguish clearly between the short-run
long-run Philip’s curve
3. An economy shows the following features
Consumption, C = 50 + 0.9Yd
Tax Revenue, T = 100
Investment, I = 150 – 5i
Government Expenditure, G = 100
Money demand, L = 0.2Y – 10i
Money Supply, M = 100
Exports, X = 20
Imports, M = 10 + 0.1Y
N/B
Yd is the disposable income
Required,
(a) Obtain the IS and LM equations of the economy
(b) Find the equilibrium income and rate of interest
(c) Find the
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