Assume that an open economy with a floating exchange rate is described by the equations: C = 0.5(Y-T) T= 1000 I= 1500 -250r G= 1500 NX= 1000 – 250e (M/P) d = 0.5Y – 500r M= 1000 S-I= 500 – 250r P= 2 r* = 1 a. Derive the equation for the IS* curve.  b. Derive the equation for the LM curve.  c. Solve for equilibrium Y

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