Illustratr what is there is an increase in the supply

Reference no: EM1325939

Given the following equations:
C=500 +0.8(1-.025y)
I = 900-50r
G=800
T = 100
X = 350
M = 150+0.15y

M/P = 500
L = .25y-62.5r

Find

a)AE equation
b) IS curve
c) LM curve
d) equilibirum Y
d) trade balance
e)gov't budget
f) what happens if g rises to 900?
g)what is there is an increase in the supply of money?

Please note answers include full step by step instructions, with easy to understand analysis.

Reference no: EM1325939

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