Consider the basic Neoclassical model. Suppose we assume specific functional forms for the consumption and investment demand functions. These are: Ct = c1(Yt Gt) + c2(Yt+1 Gt+1) c3rt It = d1rt + d2At+1 + d3Kt Here, c1 through c3 and d1 through ds are fixed parameters governing the sensitivity of consumption and investment to different factors relevant to those decisions

(e) The resource constraint Yt = Ct + It + Gt must hold. Use the given functional forms for consumption and investment, combined with the resource constraint, to derive an algebraic expression for the IS curve. (Hint: Substitute in for Ct and It and solve for Yt .)