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Derive the is relation or equation

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Reference no: EM132506765

Given: C = 500 + .6Yd I = 200 + .3Y - 2000i G = 300 T = 200

(M/P)d = 4Y -12000i M/P = 3000

Show your solution:

a. Derive the IS relation or equation.

b. Derive the LM relation or equation.

c. Solve for the equilibrium interest rate.

d. Solve for the equilibrium output.

Reference no: EM132506765

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