Question:
Consider a closed economy IS-LM model. The goods and the money market equations are respectively given as follows:
$ π = 90 + 0.8π_π β 100π + πΊ$
$π_π = 750 + 0.2π β 260π$
where, π = national income; $π_π$ = disposable income; π = total tax given by π = 5 + 0.2π; π = interest rate; πΊ = government expenditure = 300; $ π_π $ = constant money supply = 950.
The value of π at equilibrium π is _______. (rounded off to the nearest integer).
Consider a closed economy IS-LM model. The goods and the money market equations are respectively given as follows:
$ π = 90 + 0.8π_π β 100π + πΊ$
$π_π = 750 + 0.2π β 260π$
where, π = national income; $π_π$ = disposable income; π = total tax given by π = 5 + 0.2π; π = interest rate; πΊ = government expenditure = 300; $ π_π $ = constant money supply = 950.
The value of π at equilibrium π is _______. (rounded off to the nearest integer).
$ π = 90 + 0.8π_π β 100π + πΊ$
$π_π = 750 + 0.2π β 260π$
where, π = national income; $π_π$ = disposable income; π = total tax given by π = 5 + 0.2π; π = interest rate; πΊ = government expenditure = 300; $ π_π $ = constant money supply = 950.
The value of π at equilibrium π is _______. (rounded off to the nearest integer).
Updated On: Oct 1, 2024
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Correct Answer: 215
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The correct answer is :215
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