# Suppose that: C = c_0 + c_1 (Y - T) T = T_0 I = I_0 G = g_0 + (g_1)^i Then the equation for the...

## Question:

Suppose that:

C = c_0 + c_1 (Y - T)

T = T_0

I = I_0

G = g_0 + (g_1)^i

Then the equation for the IS curve is:

## IS-LM Model:

The IS-LM model is a classic Keynesian model of short-term equilibrium income and interest rate. The model is a general model that consists of two markets: the goods market and the money market. The goods market equilibrium is represented by the IS curve, while the LM curve represents the money market equilibrium.