How can you write the geometric distribution into an exponential
distribution?
For the geometric distribution: P(y; p) = p(1 − p) ^ y−1
for y = 1,2, ⋯ and 0 < p < 1.
Q1) Define and derive the IS-LM model. More specifically, how we
obtain the IS-LM equilibrium? Please explain every step in detail.
(40 pts.)
What happens if autonomous government spending increases? Use
graphs to illustrate your points. (60 pts.)