ECON 200 Problem Set 6 Fall 2007

ECON 200 Problem Set 6 Fall 2007 - Due at the beginning of...

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Due at the beginning of class on November 8, 2007 Economics 200 Macroeconomic Theory Problem Set 6 1. Consider an economy whose short-run behavior is described by the equations G œ #!!  Þ&Ð]  XÑ XœÞ&] M œ $!!  "&!< K œ "!! œ ]  #!!< Q œ %!! Tœ" ˆ‰ Q T H where all variables have the same meaning as in class. (a) Find the autonomous spending multiplier for this economy. (5 points) (b) Define, and find the equation for, the IS curve. (5 points) (c) Define, and find the equation for, the LM curve
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