answer the below question:

Question 1. The following equations describe an economy: 0 = 300 + 0.6(Y T) I = 700 807' G = T = 500 (balanced budget) 0? (if) = Y 2001'" M = 3,000 P = 3 (a) Using the equations above, derive the equations for IS and LM curves. (b) Calculate the equilibrium level of income (Y) and the equilibrium interest rate ('r). (c) Construct a graph to show the equilibrium point you derived in part (b). Be sure to numerically label your graph. (d) Suppose a newly elected president increases the government spending by 200. Assuming that money supply held constant, what are the new equilibrium interest rate and output? (e) Now suppose that the central bank increases the money supply by 1,500. Calculate the new equilibrium interest rate and output in the economy. (f) Show the equilibria you calculated in parts ((1) and (e) on your graph. You can label the transition points as B and C respectively. Be sure to numerically label your graph