Q 1 / 4·7.5 pts
90:00
**IS-LM with default parameters.** c₀=100, c₁=0.6, T=200, I₀=150, G=200, d₁=500, iᵀ=0.04. Compute the IS equation, the equilibrium output Y*, and predict Y after the CB raises iᵀ by 1pp.
c₀=100, c₁=0.6, T=200, I₀=150, G=200, d₁=500, iᵀ=0.04. Compute step-by-step. Then handle the rate hike.
- (a)Autonomous demand A:
- (b)Multiplier k:
- (c)Initial Y*:
- (d)ΔY when iᵀ rises by 1pp:
- (e)New Y: