PART A (50 units): If in an IS-LM model is is defined by the equation Y = 800 - 1000i and LM by the equation Y = 600 + 2000i, answer the following questions when the real demand and supply of money are given as follows: (M/P) s = = 1200 (M/P) d = 2Y - 4000i 1. Calculate the resulting equilibrium values for product (Y) and interest rate (i). 2. Assume that the Central Bank increases the amount of money by 300. Which will be the effect of expansionary monetary policy on the IS and LM; Calculate the new equilibrium values for product (Y) and interest rate (i). THE change in the values of the variables is to be expected? 3. Following an expansionary fiscal policy, IS becomes Y = 1000- 1000i. Calculate the new equilibrium values for product (Y) and interest rate (i). THE change in the values of the variables is to be expected? 4. If in the 3rd case after the result of the policy a new one was applied expansionary monetary policy that would lead to an LM with Y = 800 + 2000i, What would be the new equilibrium values for interest rate () and product (Y)