Question: Please solve the following question Medium-Run Macroeconomics: IS-LM-PC, ADAS Question 1 The labor market is characterized by the following equations W/Pe = 10 z 10s

Please solve the following question

Please solve the following question Medium-Run Macroeconomics: IS-LM-PC, ADAS Question 1 The

Medium-Run Macroeconomics: IS-LM-PC, ADAS Question 1 The labor market is characterized by the following equations W/Pe = 10 z 10s Y=N; Z=9;L:600;n:1 where Z : unemployment benefits, p : markup, Pe : expected price level, L : labor force, N = employment level, U = unemployment rate. Md/p = 51/ A new and M = 10,000 I\" = 100 200r + 011/ C = 120 + 0.4(1/ 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 1)) 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 P3 is 4

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