Given C= 102 + 0.75Yd,                 Â
I=150 – 100i, Ms =300, LT=0.25Y, andLA = 124-200i
2.1 Find commodity market equilibriumi.e. IS curve
2.2. Find money market equilibriumi.e. LM curve
2.3. Find equilibrium income
2.4. Find equilibrium interestrate
Suppose money supply increases by$17,
2.5. Find the amount of newequilibrium income
2.6. Find the amount of new interestrate
Suppose autonomous investment dropsdown by $97
2.7. What is the amount of newequilibrium income?
2.8. Find the new interest rate
This information was given at the topif you need it.
Given the following information
CÂ Â Â Â Â Â Â Â = Co +b(Y-T)
IÂ Â Â Â Â Â Â Â Â Â =Io + Iy - IrR
GÂ Â Â Â Â Â Â Â =Go
TÂ Â Â Â Â Â Â Â Â =To
Md      = Lo – LrR +LyY
Ms          = Mo
Where C0 = Autonomous consumption
b= MPC,
Iy= income sensitivity of investment (Incomeelasticity of investment)
Ir= interest elasticity of investmen
Lr= interest elasticity of money demand
Ly= income elasticity of money demad
I= investment, G= Government spending, T = Taxes
R= interest rate
Y= GDP
