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Goods Market: 200 0.25 150 0.25 1000 250; 200 C Y T I Y r G T Money Market: 2 8000 1600 d M Y

Goods Market: 200 0.25 150 0.25 1000 250; 200 C Y T I Y r G T Money Market: 2 8000 1600 d M Y r P M P The questions for Part B are as follows: (1. Enter your name, and the name of anyone else you worked with on this assignment.) 2. Derive the IS relation. 3. Derive the LM relation. 4. Solve for the equilibrium level of output. 5. Solve for the equilibrium real interest rate. 67. Solve for the equilibrium values of C and I and verify that you obtained the value for Y by adding up the equilibrium values of C, I and G

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