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285 Century Place // Louisville, CO // 80027 macroeconomics 4-7 answer key
Y = 1000 − 50 ( 0.05 ) = 1000 − 2.5 = 997.5
Suppose the aggregate supply curve is given by P = 100 + 0.2 Y and the aggregate demand curve is given by Y = 1000 − 50 P . What is the equilibrium level of output and price?
Δ M = 100 × 5 = 500 million
Suppose the IS curve is given by Y = 1000 − 50 r and the LM curve is given by M / P = 0.2 Y + 100 r . If the interest rate is 5%, what is the level of output?
© © 2026 Bright Stage.
285 Century Place // Louisville, CO // 80027 macroeconomics 4-7 answer key