National Income Determination (IS-LS analysis)
If Ms is increased, what effect does happen on the balanced
national income ?

ratprint:false; kill(all);

r1: solve(ev(Y=C+Inv, C=200+0.7*Y, Inv=-100*r+100),r)[1];

r2: solve(ev(Ms=Md, Md=0.2*Y+400-200*r),r)[1];

MoneyS: solve((r1, r2), Ms)[1];

load(draw);


draw3d(color = blue,


             explicit(rhs(MoneyS),Y,0,1100,r,0,0.2),


             contour_levels = {580,590},


             contour        = both,


             surface_hide   = true) ;

r2a: solve(ev(MoneyS, Ms:580),r)[1];

r2b: solve(ev(MoneyS, Ms:590),r)[1];

plot2d([rhs(r1), rhs(r2a), rhs(r2b)], [Y, 900,1100],[y, 0, 0.2]);

Algebraic computation

solve((rhs(r1)=rhs(r2a)), Y);

float(solve((rhs(r1)=rhs(r2b)), Y)[1]);

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Contact address: Prof. Yukari Shirota, Faculty of Economics, Gakushuin University, 1-5-1 Mejiro,
Toshima-ku, Tokyo, 171-8588 JAPAN,  yukari.shirota@ipsj.or.jp

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