Join TSR now and get all your revision questions answeredSign up now
    • Thread Starter
    Offline

    0
    ReputationRep:
    Name:  ECON.JPG
Views: 48
Size:  70.3 KB

    Hi all, I've attached a picture of my problem sheet above. I'm having a lot of trouble with it - I assume I need to minimise the L function using the other 2 as a constraint, but not really sure how. I've substituted the LM into the IS curve, and then assume I need to substitute that into the L function, but a bit stuck there. (for Q2). Seeing as fixing the level of the I, the CB lets the money stock adjust endogenously, we probably don't need to do the same substitution for Q1?


    Any help would be really appreciated.

    Thanks
 
 
 
Poll
Which Fantasy Franchise is the best?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.