# Answer to Question #36555 in Economics of Enterprise for KELVIN

Question #36555

Consider the following IS/LM model for a closed economy

C=400+0.4yd ,I=200+0.3y-2000i, G=360,T=400 ,m/p=4y-100000ims=2600 (10 marks)

i. Derive the IS equation

ii Derive the LM equation

iii. Solve for equilibrium real output

iv. Solve for the equilibrium interest rate

v. Solve for equilibrium value of consumption and investment

C=400+0.4yd ,I=200+0.3y-2000i, G=360,T=400 ,m/p=4y-100000ims=2600 (10 marks)

i. Derive the IS equation

ii Derive the LM equation

iii. Solve for equilibrium real output

iv. Solve for the equilibrium interest rate

v. Solve for equilibrium value of consumption and investment

Expert's answer

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