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Question #7: IS-LM Model (Numerical Analysis) Suppose the following equations describe an economy: Y = C+I+G C =120 + 0.5(Y -T) I = 100 -

Question #7: IS-LM Model (Numerical Analysis) Suppose the following equations describe an economy: Y = C+I+G C =120 + 0.5(Y -T) I = 100 - 10r G = 50 T =40 L(r, Y) = Y - 20r M = 600 P =2 (a) Using the information above, derive the equation for the IS curve. (b) Using the information above, derive the equation for the LM curve. (c) What are the equilibrium levels of income and interest rate

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