Consider the following short-run model of closed economy with following information: G = 2000; T = 1000; M = 1000; C=1000+0.2Yd; P = 10 and L(Y,r) = Y –2r; I(r) = 500-5r;

Equilibrium interest rate is (i,)

Investment level at equilibrium interest rate is (ii)

IS equation is Y and LM equation is (iii)

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