An economy is described by the following equations: (CLO: CK3, CC2) Desired consumption Desired investment Government purchases G= 100 Taxes Cd = 130 + 0,5 (Y -T)- 500r Id = 200 - 500r Real money demand Money supply Full-employment output T= 100 L= 0.5Y - 1000r M= 1320 Y= 600 Assume that expected inflation is zero so that money demand depends directly o.n the real interest rate. Do the following:

Question 1-a a. Write the equation for the IS curve.

Question 1-b b. Write the equation for the LM curve.