Please solve question a & b below.

Consider the following model of a closed macroeconomy. The Labour Market Y = 60N N2 /2 (1) Production function Nd =60W/P (2) Labour demand NS = (0.5)W/P (3) Labour supply N .2 = NS = N (4) Labour market equilibrium The Goods Market C = 140 + 0.751;, (5) Consumption function I = 20 + 0.2Y 2005 (6) Investment function G =150 (7) Government expenditure YD a Y T (8) Disposable income T = Y / 3 (9) Tax function Y = C + I+ G (1 O) Goods market equilibrium The Money Market L =100+0.2Y200i (11) Money demand M / P = 300 l P (12) Money supply L =M/P (13) Money market equilibrium a) Assume that the price level P is fixed at F =1. Solve for the equilibrium levels of Y" and i", using the IS and LM equations associated with the goods and money markets. (10 marks) b) Assume, alternatively. that all prices, including wages, are flexible (so this becomes 3 Classical model). Solve for the equilibrium values of Y', z", and P\". (10 marks)