10.* An economy is described by the following equations: C = 1,600 + 0.6(Y − T) − 2,000r, I p = 2,500 − 1,000r, G = __ G = 2,000, NX = ___ NX  = 50, T = T = 2,000. Suppose also that the central bank’s policy reaction function is the same as in Problem 9. (LO1) a. Find an equation relating planned spending to output and the real interest rate. b. Construct a table showing the relationship between short-run equilibrium output and inflation, for inflation rates between 0 and 4 percent. Using this table, graph the AD curve for the economy. c. Repeat parts a and b, assuming that government purchases have increased to 2,100. How does an increase in government purchases affect the AD curve?