Answer to below questions and analysis your results by drawing the required curves. Discuss the figures in relation to chapters 4,6 and 7 . 1) Desired consumption is Cd=2000+0.9Y100,000rG, and desired investment is Id=1000 45,000r. Real money demand is Md/P=Y6000i. Other variables are Le=0.03,G=500,Y=1000, and M=2100. (a) Find the equilibrium values of the real interest rate, consumption, investment, and the price level. (b) Suppose government purchases decline to 400 . What happens to the variables listed in part (a)? (c) Suppose government purchases rise to 600 . What happens to the variables listed in part (a)? (d) What feature in this example leads to the result that you don't need to know the amount of taxes collected bythe government to find the equilibrium? 2) Use the IS - LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment, output, the real interest rate, consumption, investment, and the price level. (a) Tougher immigration laws reduce the working-age population. (b) There's increased volatility in the prices of stocks and bonds. (c) The government tries to achieve tax equity by an increase in the corporate tax rate. (d) Increased computerization reduces stock market brokerage costs. 3) For each of the following changes, what happens to the real interest rate and output in the very short run, beforethe price level has adjusted to restore general equilibrium? (a) Wealth declines. (b) Money supply declines. (c) The future marginal productivity of capital declines. (d) Expected inflation rises. (e) Future income rises. 4) For each outcome below, tell what type of shift must have taken place in either the aggregate demand curve or the long-run aggregate supply curve. (a) In the short run, the price level is unchanged and output rises. (b) In the long run, the price level declines and output is unchanged. (c) In the long run, the price level rises and output decline