Gce Model Questions Vol1 2020 Economics Question 47
Practice objective / multiple choice question 47 from the 2020 Gce Model Questions Vol1 Economics examination.
The IS curve for a closed economy is given by \(Y = 250 - 5i\) and the LM curve by \(\frac{M}{P} = 0.5Y - 10i\). Initially the real money supply \(\frac{M}{P}\) is 100. Find the equilibrium output \(Y\). Then, if the real money supply rises to 120, determine the new equilibrium output.
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About This Question
This is Gce Model Questions Vol1 2020 Economics Question 47. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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