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The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin
Edition 10ISBN: 978-0132763646The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin
Edition 10ISBN: 978-0132763646 Exercise 16
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Suppose the monetary policy curve is given by r = 1.5 + 0.75?, and the IS curve is Y = 13 - r.
a. Calculate an expression for the aggregate demand curve.
b. Calculate the real interest rate and aggregate output when the inflation rate is 2%, 3%, and 4%.
c. Draw graphs of the IS , MP , and AD curves, labeling the points in the appropriate graphs from part (b) above.
Suppose the monetary policy curve is given by r = 1.5 + 0.75?, and the IS curve is Y = 13 - r.
a. Calculate an expression for the aggregate demand curve.
b. Calculate the real interest rate and aggregate output when the inflation rate is 2%, 3%, and 4%.
c. Draw graphs of the IS , MP , and AD curves, labeling the points in the appropriate graphs from part (b) above.
Explanation
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a. We can find an expression for the AD ...
The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin
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