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  3. the following equation describes an economy. (thin

The following equation describes an economy. (Think of C,I, G, etc., as being measured in...

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Accounting

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The following equation describes an economy. (Think of C,I, G, etc., as being measured in billions and i as a percentage: a 5 percent interest rate implies i=5.) C=0.8YDt=0.25I=90050iG=800L(Y,i)=0.25Y62.5iPM=500 a. Find the equation of the IS curve? b. What is the slope of the IS curve? c. What is the equation that describes the LM curve? d. Graph the IS and LM curve. e. What is the slope of the LM curve? f. What are the equilibrium levels of income and the interest rate

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