Help me, please!

Question B of problem 4 is based on question d of problem 1.

1) Assume the following equations summarize the structure of the economy.

C = Ca + 0.5(Y-T);

Ca = 500;

T = 200;

Ip = 1,500-50r;

G = 100;

and Md = 0.25Y -25r;

Ms = 250

d) Suppose the government increases its spending by 500. Compute the new equilibrium

interest rate and output. (0.5). What is the size of the crowding-out effect? Explain

the mechanism of crowding-out effect?

4) Assume the following equations summarize the structure of the economy. C = Ca + 0.5(Y-T); Ca = 500; T = 200; Ip = 1,500-25r; G = 100; and Md = 0.25Y 25r; Ms = 250 a) Compute the equilibrium interest rate and output. (0.5) b) Suppose the government increases its spending by 500. Compute the new equilibrium interest rate, equilibrium output, and the size of crowding out effect (0.5)? Compare the effectiveness of the scal policy with your result in question Id) and explain the differences (1)