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Consider the following numerical example of the IS-LM model: C = 100 + 0.3YD I =...

Consider the following numerical example of the IS-LM model:

C = 100 + 0.3YD

I = 150 + 0.2Y - 1000i

T = 100

G = 200

i = 0.01

a) What is the equilibrium level out output (Y)?

b) suppose the government increase spending to G=300. What is the new equilibrium level out output?

c) G = 200. What is the equilibrium supply of money id the demand for money is given by (M/P)d = 2Y - 4000i?

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