Consider the following example of an IS-LM model:

C = 150 + 0.30Y_D

I = 200 + 0.20Y - 1000i

G = 300

T = 220

i = .06

(a) Derive the IS curve. (want an equation with y on the left and everything else on the right).

(b) Derive the LM curve.

(c) Find the equilibrium value for Y.

(d) Find the equilibrium values for C and I. Verify that Y = C + I + G.

(e) Use the real demand for money equation to find the equilibrium real money supply:

(M/P)^D = 2Y - 8000i

(f) Next, consider the impact on the value of equilibrium Y when G increases to 400. Also, find the new size of the budget balance.