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Compute the equilibrium level of the national income

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Given the following equations representing a closed economy with zeroinflation, and assuming the central bank fixes the supply of money: C=150+0.6Yd, I=100+0.1Y-3i, T=200, G=500, Md/p=0.8Y-100i, Ms/P=1000,  write the IS and LM functions

b) compute the equilibrium level of the national income and the interest rate.

C) Discuss the impact on the general equilibrium position of a fiscal expansion realized through an increase by 200 in government spending (other things being equal)

D) What type of monetary policy should be implemented by the central bank in order to keep unchanged the interest rate? Show in a diagram.

Reference no: EM132501303

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