What will be the equilibrium income when commodity market (IS) and the money market (LM) are in equilibrium in the case of C=102+0.7Y, I=150-100i, =470, =0.25Y, = 124-200i ?
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JNU SSS 2020 Question 18: IS-LM model
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What will be the equilibrium income when commodity market (IS) and the money market (LM) are in equilibrium in the case of C=102+0.7Y, I=150-100i, M_S =470, M_T =0.25Y, M_Z = 124-200i? (A) 1100 (B) 1300 (C) 1900 (D) 1000
IS-LM model has come up 137 times in 7 exams since 2004.
What this question tests
This question is on Equilibrium and shifts in IS-LM, part of IS-LM model in Macroeconomics.
Solving for income and the interest rate and tracing what shifts each curve.
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