Problem 2. (15 points) Consider the following economy. The aggregate demand curve is given as: Y=300-2P. The aggregate supply curve is derived from the sticky-price model. The fraction of the firms with sticky prices is s while the fraction of the firms with flexible prices is (1-s). Assume s=0.5. The firms with flexible prices set their prices following: pf=E[P+(Y-Y )] The firms with sticky prices set their prices following: ps==EP.The long-run AS curve is given as Y =100. a) Derive the SRAS curve. (Note: The value of EP is not specified. You need to leave it as EP in your SRAS curve.) b) Suppose that the economy is currently at the long-run equilibrium. Determine the equilibrium values of Y, P, and EP. Also draw the AD, SRAS, and LRAS curves to describe the equilibrium. c) Suppose that, as a result of an expansionary fiscal policy, the aggregate demand changes to: Y=330-2P. Suppose that this policy was not expected. Describe the short-run equilibrium using the AD, SRAS, and LRAS curves. Determine the equilibrium values of Y, P, and EP