Consider the following

C = 200 + 0.5Y_d

_d =

= 200 + 0.25 400

= 200

= 500

(/ )^d = 0.5 1500

= 1

(1) Derive the IS equation (curve).

(2) Suppose the central bank sets a monetary base target (M/P)^s as 1370. Derive the LM equation (curve).

(3) Find the intersection of two equations (curves).

(4) Suppose, now the central bank sets the target interest rate (instead of setting the monetary base target), and supply money accordingly. Describe the LM curve, when the target interest rate is 5%.

Now, LM curve becomes (flat / upward slopping). (For every level of ______, the central bank changes the money supply so that the equilibrium interest rate from financial market is _____%

(5) Derive the new equilibrium from the IS-LM model

(6) Graphically represent the new equilibrium with the IS and LM curve, and their intersection

For (1), i got Y = 3200 - 1600i

For (2), I got Y = 2740 + 3000i

For (3), I got i* = 10%, Y* = 3040

For (4), I got flat, output, 5%

For (5), I got Y* = 3120

I mainly need help with (6) but if you can check the first 5 that would be helpful.