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Aggregate Demand-Aggregate Supply Model Economics Assignment Help

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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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