Consider the following IS/LM model for a closed economy
C=400+0.4yd ,I=200+0.3y-2000i, G=360,T=400 ,m/p=4y-100000i
ms=2600 (10 marks)
i.Derive the IS equation
ii.Derive the LM equation
iii.Solve for equilibrium real output
iv.Solve for the equilibrium interest rate
v.Solve for equilibrium value of consumption and investment