C = 0.8(Y – T) |
T = 1,000 |
I = 800 – 20r |
G = 1,000 |
Y = C + I + G |
M^{s}/P = M^{d}/P = 0.4Y – 40r |
M^{s} = 1,200 |
a. Write a numerical formula for the IS curve, showing Y as a function of r alone.
b. Write a numerical formula for the LM curve, showing Y as a function of r alone.
c. What are the short-run equilibrium values of Y, r, C, I, private saving, public saving, and national saving?
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