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(i) The equation for the IS curve is given as
Y= AE = C+I + G+X-Q
Y= 700+0.85Y +760-50i +50+ 3E-0.05Y – 4E
Y-0.85Y+0.05Y = 700 + 760 + 50 -50i -1E
0.2Y = 1510-50i-1E
Y= 7550-250i –5E...
Y= AE = C+I + G+X-Q
Y= 700+0.85Y +760-50i +50+ 3E-0.05Y – 4E
Y-0.85Y+0.05Y = 700 + 760 + 50 -50i -1E
0.2Y = 1510-50i-1E
Y= 7550-250i –5E...
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