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May 6 2014 10:53pm
IS-LM Equilibrium (8 points) Assume that Jamaica is a closed economy with the
consumption function C = 400 + 0.8*(Y - T), the investment function I = 800 - 40r, and the
demand for real money balances M/P = 0.5Y - 50r. The government purchases in Jamaica
equal 1,200 and the Jamaican government is running a budget deficit of 400. The supply of
money in Jamaica is M = 2,000 and the price level is fixed at P = 1.0. Solve for the
equilibrium values of Y, r, C, and I.

I have the answers, I just don't know how to find the values.
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