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IS/LM Question
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16-03-2012 3:03pm#1Hey just doing an is/lm question for college just wondering could someone help me out im kind of stuck
C = 220 + 0.75Y
I = 165 – 10i
G(bar) = 490
TR(bar) = 300
T = .15Y
Ld = .2Y – 3i
M(bar) = 550
(i) Using the above data, derive the equation for the IS curve and LM curve0
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Hey just doing an is/lm question for college just wondering could someone help me out im kind of stuck
C = 220 + 0.75Y
I = 165 – 10i
G(bar) = 490
TR(bar) = 300
T = .15Y
Ld = .2Y – 3i
M(bar) = 550
(i) Using the above data, derive the equation for the IS curve and LM curve
It's a been a while, but I think the IS element of the equation would look like:
Y - tY = C + I + G
and the LM is a mix of the others. Basically for equiblirum IS must equal LM, so sort out the formula, do some algebra and find the simultaneous.
Like I said, it's been a while, so I might be wrong.
Check your textbook/notes.0 -
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