Write down the is and the lm equation explain why the is, Business Economics

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Write down the is and the lm equation explain why the is

1. Write down the IS and the LM equation. Explain why the IS curve is downward sloping and the LM curve is upward sloping.

2. According to the Keynesian-cross analysis, if the marginal propensity to consume is 0.8, and government expenditures and autonomous taxes are both decreased by 100. Calculate the change in income as a result of these changes.

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Business Economics: Write down the is and the lm equation explain why the is

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