ECONOMICS- see attachment
Take-home problem 2:
1. Compute the multiplier
1. Derive the equation for Ap
1. Derive the equation for the IS Curve
1. Calculate the slope of the IS Curve
1. Derive the equation of LM Curve
1. Calculate the slope of the IS Curve
1. Calculate the equilibrium value for r
1. Calculate the equilibrium value for Y
1. Construct the IS and LM curves using the interest rates of 10, 11, 12, 13, 14, 15, 16, and 17
By using the information from answers a-h.
(
)
(
)
(
)
Y
NX
G
r
I
P
M
r
Y
P
M
Y
T
r
C
T
Y
C
C
P
s
d
a
a
06
.
0
500
2200
20
1500
2000
/
5
35
.
0
/
4
.
0
1200
20
400
95
.
-
=
=
-
=
=
-
=
+
=
-
=
-
+
=