(b) Sovle the above set of equations to obtain the equation of IS curve in the form of r = f(Y). [Remark: segregate components that affect the gradients and the intercept]

MACROECONOMIC

Extracted text: (b) Sovle the above set of equations to obtain the equation of IS curve in the form of r = f(Y). [Remark: segregate components that affect the gradients and the intercept]


Extracted text: Given the following set of equations for an economy model: Consumption expenditure Investment C = A+b YD I = I* - Ir | Tax Revenue T T* + tY Import Disposable Income I*, G*, X* and M* are autonomous investment, government spending, autonomous export dan autonomous import, respectively. M M* + mY YD = Y - T (a) Sovle the above set of equations to obtain the equation of IS curve in the form of Y = f(r).