Answer on Macroeconomics Question for Paul
C=400+0.4yd ,I=200+0.3y-2000i, G=360,T=400 ,m/p=4y-100000i
ms=2600 (10 marks)
i. Derive the IS equation
Y = C + I + G
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
An open macroeconomic model is represented parametrically as follows
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