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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

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9721904

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