Z = 2000 + 0.2y; I = 1000 - 200; MD = 20 000 - 100i + 0.1y; Z = Imports; y = Income; I = Investments; i = Interest Rate; MD = Money Demand; Marginal Propensity to Save: 0.2;

Gouvernement Spending: 20 000; Exports = 4 000; Autonomous Spending = 3 000; Income Tax Rate = 0,2;

Money Supply: 15 000.

Q.1) Derive the LM equation. Express the Interest rate (i) as a function output (y)?

Q.2) Derive the IS equation. Express the Interest rate (i) as a function output (y)?

Q.3) Calculate the Equilibrium Output and Equilibrium Interest rate?

Q.4) Identify and explain any two (2) factors that give rise to a shift in IS Curve?