Show work, include graphs where needed1. Desired consumption and investment areCd= 4000-4000r+0.2YId= 2400-4000rAs usual, Y is output and r is the real interest rate. Government purchases are 2000.(a) Find the equilibrium value of the real interest rate if Y =10000.(b) Find the equilibrium value of the real interest rate if Y = 10200.(c) Graph the IS curve for this economy2. In a particular economy the real money demand function isMd/P=3000+0.1Y-10000iAssume that M=6000, P=2.0, πe = 0.02(a) What real interest rate r is consistent with equilibrium in the asset market when Y = 8000?(b) What real interest rate r is consistent with equilibrium in the asset market when Y = 9000?(c) Graph the LM curve.3. An economy is described by the following equations:Desired consumption Cd = 1275 + 0.5(Y – T) – 200r. Desired investment Id = 900 – 200r. Real money demand L = 0.5Y – 200i. Full-employment output Y = 4600. Expected inflation π e = 0. Government Purchases: G = 450Taxes: T = 450Money supply M = 9000a. Write equations for the IS curve, LM curve (given P) and AD curves (Hint: Using IS curve and LM curve to get the relation between Y and P, this is AD curve).b. Calculate the equilibrium values of output, the real interest rate, the price level, consumption and investment.4. Analyze the short-run (the price level is fixed) and the long-run (general equilibrium) effects of each of the following on the level of output, the real interest rate, and the price level. Illustrate your analysis graphically in two ways: (1) in an IS-LM-FE framework, and (2) in an aggregate demand-aggregate supple framework.(a) The expected rate of inflation declines.(b) Consumers increase their desired level of consumption at each level of income and the real interest rate.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Writing Errands is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order formOnce we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignmentAs soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download