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Consider the following
IS-LM Model

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Question: Consider the following IS-LM Model C = 189 + 0.52Yd I = 145 + 0.12Y – 1025i G = 329 T = 263 (M/P)…
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C = 189 +
0.52Yd

I = 145 + 0.12Y –
1025i

G = 329

T = 263

(M/P)^d = 1.6Y –
7737i

M/P = 1579

The IS equation is
determined to be Y=1461.78-2847.22i

The LM equation is
determined as i=-0.20408+0.00021Y

Initial equilibrium values
of Y,i,c, and I are calculated bellow
.

Y=1278

i=6.43%

C=717

I=232

Suppose that money supply
increases to (m/p)=1737

Calculate the equation for
the new LM relation.

i=-0.22451+0.00021Y

1. giving the above IS-LM equation, what is the equilibrium
output(Y) interest(i)?

what is the
equilibrium value of C?

what is the equilibrium value of I ?

DETERMINE THE VALUE OF C+I+G? round answer
to the nearest integer.

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