1.Suppose the economy is described by the following equations (we are looking at a closed economy): C=.Y+20 I=150-10r G=70 (1) Derive the IS curve, and calculate the slope (the vertical axis is r) 1. -50 2. 50 3. 1 4. -1 5. -1/50

2.The government is cutting the tax. Towards which direction will the IS curve shift in response to such action? (multiple choices 1. left 2. right 3. up 4. down