Question: Question 3 [6 points] Suppose the central bank's monetary policy sets the interest rate according to the function: i = 3 + 2(TT -

Question 3 [6 points] Suppose the central bank's monetary policy sets the interest rate according to the function: i = 3 + 2(TT - TT*) with = 3, and aggregate expenditure is. AE = 54 + - 6i a) What is the equation for the ADIT curve? Use 'Pl' to represent TT when entering your equation. Y = go-15P1 b) Plot the ADTT curve in the graph below. Aggregate Demand 7.5 S 4.5 25 50 75 100 125 150 175 200 Real GDP

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