Question: Dear Tutor, please help me to solve the questions below. Thank you! 5a The economy has an aggregate production function f(N) = 15N iNZ, where

Dear Tutor, please help me to solve the questions below. Thank you!

5a The economy has an aggregate production function f(N) = 15N iNZ, where N is labor input. Labor supply is given by N5 = 1 where Wis the money wage and P is the price level. Desired consumption depends on real income, Y, and can be written as 6'07) : 10 + 0.71'. Given real interest rate, r, the desired investment is Fi") : 30 2001". The real money demand is characterized by L(Y,r) : 10 + Y 200r. Government spending, G, and nominal money stock, M, is given as G = {J and M = 200. o What are the equilibrium values of output, consumption, investment, the real interest rate, and the price level? 0 Suppose that money supply doubles to 400. Discuss how the equilibrium values of output, consumption, investment, the real interest rate, and the price level will change. Is money neutral in this model

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