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Assume the following information represents the Italian economy in billions: C=100+0.8YdConsumption I= 300-1000R Investment G= 200 Government Expenditure t=0.25taxrate NX=80-0.1YNet exports M=800 Nominal Money Supply

Assume the following information represents the Italian economy in billions:

C=100+0.8YdConsumption

I= 300-1000R Investment

G= 200 Government Expenditure

t=0.25taxrate

NX=80-0.1YNet exports

M=800NominalMoney Supply

(M/P)^d=(0.8Y-2000R)Money Demand

P= 1Price

(a)Derive the

IS curve for this economy.

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