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Instructions Write your final numerical answer in the corresponding .pdf

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Instructions: Write your final numerical answer in the corresponding answer box. (20 points) Consider an economy described by the following: C^=$4.0trillionI=$1.5trillionG=$3.0trillionT^=$3.0trillionN^X=$1.0trillionf=0mpc=0.8d=0.35x =0.15r^=1%=0.5 a. Calculate an expression for the IS, MP and AD curves b. Let AS curve be given by the relation: =6+1.5(Y25.5) (i.e. the price shock p is zero). What are equilibrium values of inflation, output and the real interest rate [,Y,r] ?.

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Instructions: Write your final numerical answer in the corresponding answer box. (20 points) Consider an economy described by the following: C^=$4.0trillionI=$1.5trillionG=$3.0trillionT^=$3.0trillionN^X=$1.0trillionf=0mpc=0.8d=0.35x =0.15r^=1%=0.5 a. Calculate an expression for the IS, MP and AD curves b. Let AS curve be given by the relation: =6+1.5(Y25.5) (i.e. the price shock p is zero). What are equilibrium values of inflation, output and the real interest rate [,Y,r] ?

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