IS LM

Posted by econ11 on Apr 30, 2014; 3:27pm
URL: http://discussion-forum.276.s1.nabble.com/IS-LM-tp7588118.html

The equation for the IS curve is given as
Y=co+bo+G bl i
1-cl(1-t) 1-c1(1-t)
and that for the LM curve is given as
s
i=- mo- P +mlYl
2
where Y is income, i is the rate of interest, Pis the price level, Ms is money supply and
G denotes government spending.
Further, l1e-t 011(1- t) = X. Then the expression for the aggregate demand function and its slope will be?
 
how to approach such problems ? someone please give the explanation .