Question: Let the production function be F = A(10N 0.005N 2 ), where A = 2. The labor supply curve is N s = 32 +

Let the production function be F = A(10N 0.005N²), where A = 2. The labor supply curve is N^s = 32 + 10(1 t)w, where w is the real wage and t = 0.5 is the tax rate. Let r be the real interest rate, the desired consumption and desired investment can be described by C^d = 650 + 0.8(Y T) 100r and I^d = 650 100r, respectively. Government tax is T = 40 + 0.5Y and government purchase is G = 97.6. Really money demand function is L = 0.5Y 250i, where i is the nominal interest rate. Assume nominal money supply is fixed at 27700, and the expected inflation rate ^e = 2%.

(a) Calculate the general equilibrium level of real wage, employment and output.

(b) Find the equation that describes the IS curve.

(d) Find the equation that describes the LM curve.

(e) Find the equation that describes the AD curve.

(f) Calculate the price level in the general equilibrium.

(Bonus) Find the equation that describes the FE curve.

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