Find the equation for Ap, equation for the IS and LM curve.
Suppose the subsequent parameters:
C = Cp + 0.95Y
(MIP)d = 0.25Y - 850r
Ca = 1000 - 40r
NX = 950 - 0.15Y
Ms = 1100
Ip = 800 - 20r
P = 1)00
G = 900
1. (3%) Illustrate what is the equation for the equilibrium value of Ap?
2. (2%) Illustrate what is the MLR? k?
3. (2%) Illustrate what is the equation for the IS curve?
4. (2%) Illustrate what is the equation for the LM curve?
5. (1%) Illustrate what is the equilibrium output level?
6. (1%) Illustrate what is the equilibrium interest rate?
7. (3%) Illustrate what is the equation for the AD curve?