9.* Planned aggregate expenditure in Lotusland depends on real GDP and the real interest rate according to the following equation PAE = 3,000 + 0.8Y − 2,000r.

The Bank of Lotusland, the central bank, has announced that it will set the real interest rate according to the following policy reaction function: Rate of inflation, π Real interest rate, r 0.0 0.02 0.01 0.03 0.02 0.04 0.03 0.05 0.04 0.06 For the rates of inflation given, find autonomous expenditure and short-run equilibrium output in Lotusland. Graph the AD curve. (LO1)