1. Suppose the relationship between short-run equilibrium output, Y, and the real interest rate, r, set by the Reserve Bank is given by: Suppose also that the Reserve Bank’s reaction function is the one shown in Table 11A.1 in Section A of the Appendix to this chapter. For whole-number inflation rates between 0 and 4 per cent, find the real interest rate by the Reserve Bank and the resulting short-run equilibrium output. Graph the aggregate demand (AD) curve numerically. LO 11.1 HARD