Estimation of equilibrium income using IS - LM model.
Find out the equilibrium values of r, Y,C I, Xn, Md and T from these equations.
1. Y = C + I + G + Xn G = 1,000
2. C = 2,000 + .6(Y-T) Ms = 1,000
3. T = 100 + .08Y Md = 500 + .08Y - 8r
4. I = 300 - 8r
5. Xn = 200 - .05Y