I have a new question which is at the end of the file you sent me. Can you answer it?
How can I show my work, and illustrate with IS/LM graph, to solve for the equilibrium interest rate (r*)
and output level (Y*) given the following:
C = 550 + 0.75(Y-T)
I = 300 ?10r
G = T = 200
= Y ? 100r
Equating and solving for Y:
If government spending increases by 100, what would be the new (r*) and Y*) combination? Show work
and illustrate IS/LM.