Q1. Consider the following Is-LM model.
c= 200+ 0.25Y(d)
I= 150+ .25Y-1000i
G= 250
T= 200
(M/P)d= 2Y- 8000i
M/P= 1600
a. Derive the IS relation.
B. derive the LM relation
c. solve the equilibrium real output
Q2. The current marketplace value of Brimstone's stock is $20. Elucidate how Illustrate what the balance sheet will look like (comparison to above) if Brimstone declares a 10% stock dividend.