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The commodity Market and Money Market of a given economy are presented as below: C = 250 + 0.8Yd I = 2,00 - 3r G=100

The commodity Market and Money Market of a given economy are presented as below: C = 250 + 0.8Yd I = 2,00 - 3r G=100 Lt = 0.3Y Ls = 2 - 20r Ms = 1,300 Derive the I-S curve. Derive the L-M curve. Determine the equilibrium level of income and interest rate. If the money supply is increased by 100, what would be the effect on the equilibrium level of income and interest rate.

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