Question
When C = 200 + 0.75(Y − T), I = 200 − 25r, G = 100,
T = 100. Find IS curve function.Solution
For IS curve, goods market is in equilibrium so equate AD = AS to get the equation. 200 + 0.75(Y-100) +200-25r + 100 = Y Y = 1700 − 100r
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