Question: Calculative Question We have an IS-LM Model given below; C = 175 + 0.25YD I = 150 + 0.25Y - 1000i G = 275 T

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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