Goods market

Equilbirum in the goods market is Y = C + I + G where

C = a + Y

I = b r

Solving for Y we get Y=(a+b-r+G)/1-)

Money market

Equilibrium in the money market is Ms = Md where

Md = M0 + mY dr

Solving for r we get r= (M₀+mY-M_s)/d

Questions

1. How many combinations of output and the interest rate (Y, r) put the goods market in equilibrium?

2. How many combinations of (Y, r) put the money market in equilibrium?

3. How many combinations of (Y, r) put both in equilibrium?