(Appendix 11 .A) Consider the following closed economy:

Here, r is the real interest rate, Y is output, and P is the price level. Assume that expected inflation if = 0, nominal money supply M = 88 950, and full employment output F = 6000.
a. Use the notation of Appendices 9.B and 1l.A. What are the values of the parameters αIS, βIS, αLM, βLM, r, and β? (Solve for asset market equilibrium to obtain the coefficients of the LM equation.)
b. What is the equation of the aggregate demand curve?
c. Suppose that the expected price level Pe = 29.15. What are the short-run equilibrium values of the price level P and output F?
d. What are the long-run equilibrium values of the price level P and output F?

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IS curve Real money demand Short-run aggregate supply r = 2.47-0.0004 Y. L = 0.5Y-500(r + Y+100(P-P) ).