C=100+0.6Y , I= 500-40R
G = 200, L=200-50R+0.4Y, Ms = 600
Find money market and savings-investment market equl;ibrium functions.

Closed economy (NX=0)
Y=C+I+G
Y=100+0.6Y+500-40R+200
0.4Y=800-40R
Y=2000-100R

IS curve: Y=2000-100R or R=20-0.01Y

Initial price level=1
200-50R+0.4Y=600
400+50R=0.4Y
Y=1000+125R

LM curve: Y=1000+125R or R=0.008Y-8

Equilibrium:
Y=1000+125R
Y=2000-100R
1000+125R=2000-100R
1000=225R
R=4.44%
Y=1'556

Equilibrium: R=4.44%, Y=1'556

Aggregate demand:
200-50R+0.4Y=600/P
Y=2000-100R
100R=Y-2000
50R=0.5Y-1000
200-(0.5Y-1000)+0.4Y=600/P
200-0.5Y+0.4Y+1000=600/P
1200-600/P=0.1Y
Y=12'000-6'000/P

Aggregate demand: Y=12'000-6'000/P or P=6'000/(12'000-Y)
{P≥0.5; Y<12'000; R≥0}

P.S. Just have solved the same task few minutes ago for another folk.

Find money market and savings Investment equilibrium?

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