Consider the following Keynesian economy:

In this economy, the real interest rate does not deviate from the foreign interest rate.
a. What are the general equilibrium (that is, long-run) values of output, the real interest rate, consumption, investment, net exports, and the price level?
b. Starting from full employment, government purchases are increased by 60, to 212. What are the effects of this change on output, the real interest rate, consumption, investment, and net exports in the short run?
c. Using the same information as provided in part (b), in the long run what would happen to the nominal money supply, the price level, and the real money supply?

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Desired consumption 。= 200 + 0.6(Y-T) 2007 300-300r. 20 + 0.27. Desired investment Taxes Government purchases G 152. Net exports Money demand Money supply Full-employment output Y=1000. T NX = 150-0.08Y-500r. L = 0.5Y-200r. M 924.