2. Consider the following IS-LM model: Y = C+I+G. C = 50+0.75(YT). I = 150107'. Md = Y50 . P r G = 250. T
2. Consider the following IS-LM model: Y = C+I+G. C = 50+0.75(YT). I = 150107'. Md = Y50 . P r G = 250. T = 200. Ms = 750. P (a) (4 points) Write down the function representing the IS curve and the function representing the LM curve. (b) (4 points) Solve for the equilibrium levels of output and the interest rate. Show necessary steps
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