Assignment Task
Task
- Solve for the new IS-LM equilibrium output.
- Calculate the new IS-LM equilibrium real interest rate based on Part 22:
- Suppose the Central Bank responds to this change in Money Demand by increasing the Money Supply to 629. Solve for the new IS-LM equilibrium output.
- Calculate the new IS-LM equilibrium interest rate based on part (24) above.
- The Aggregate Demand-Aggregate Supply Model Given the Aggregate Demand and Aggregate Supply equations In the model: Part 26. Solve for the equilibrium output in the AD-AS model.
- Solve for the equilibrium price level in the AD-AS model.
- Suppose a 260 autonomous tax cut raises equilibrium in the AD-AS model by 216.58. Calculate the Autonomous Tax
- Multiplier in the AD-AS model.
- Calculate the Expenditures Multiplier in the AD-AS model based on your answer in Part 28 above.
- How much increase In government expenditures would raise equilibrium output in the AD-AS model by the same amount as the autonomus tax increased it in Part 28 above (i.e. by 216.58)?
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