Q3Z = C + I + G

C = 100 + 0.75Y_d

I = 80 + 0.1Y - 150i

G = 60,T = 40

M^d= Y - 3000i

M^s= 1000

1. Derive the IS curve
2. Derive the LM curve.
3. Find the equilibrium values ofiand Y.
4. Suppose G increases to 100, what is the new level of output then? Calculate using a multiplier.