1. a closed economy. equation for IS and LM curves. all calculations and work.

2. [Closed economy IS-LM] The CMC economy is initially described by the following equations C = 1000 + 0.75(Y T) I = 500 757\" M d (F) = Y 1007' G = 500 T = 1,000 M = 6,000 P = 2 Assume that the economy begins in long run equilibrium. a. Write down the equations for the IS and LM curves and calculate the equilibrium interest rate and level of income (6 pts)