I know this is supposed to be a simple question, but I need to check the answers for it and as it was a past exam question I do not have the results for it.If anyone can help out, that would be wonderful!!
The Question is the the following:
Closed Economy given:
C = 40 + 0.5Yd. I = 0.4Y-10i, G = 12.5, T = 5, Yd = Y - T and i = 2.5 + 0.5Y
(a) Find IS curve equation (b) Find Y equilibrium (c) find i equilibrium