Please do question 5 and question 1. There is an error in question 5. g is set M/P to its initial of 3000 not 1600

Question 5 Consider the following lSLM model: C = 400 + 0.25Yo; l= 300 + 0.25Y - 1500i; (3 = 600; T = 400; (M/ P)d = ZY - '12 000i; M/P = 3000 a. Derive the 15 relation. b. Derive the LM relation. c. Solve for equilibrium real output. d. Solve for the equilibrium interest rate. e. Solve for the equilibrium values of C and I, and verify the value you obtained for Yby adding C, l and G. i. Now suppose that the money supply increases to M/P = 4320. Solve for Y, i, C and l, and describe in words the effects of an expansionary monetary policy. g. Set M/P equal to its initial value of 1600. Now suppose that government spending increases to G = 840. Summarize the effects of an expansionary fiscal policy on Y, i and C. Medium-Run Macroeconomics: IS-LM-PC, AD-AS Question 1 The labor market is characterized by the following equations W/Pe = 10 z 10s Y=N;Z=9;L=600:,u=1 where Z : unemployment benefits, ,u 2 markup, P" 2 expected price level, L = labor force, N = employment level, U = unemployment rate. Mil/P = 5r ~ 1200r and M = 10,000 I\" = 100 200r + 011' C = 120 + 0.4(Y T) G = 400;?" = 400. a) i) derive both the AD and AS curves ii) provide a sound economic intuition for the signs of their slopes b) what is the natural level of output in this economy? c) What is the equilibrium level of output in the short run if the expected price level P9 is 4