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Calculative Question
We have an IS-LM Model given below;
C = 175 + 0.25YD
I = 150 + 0.25Y - 1000i
G = 275
T = 200
(M / P) d = Y - 4000i
(M / P) s = 800
a) Derive the IS and LM equations
b) Calculate the equilibrium level of income (Y) and the interest rate (i).
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