1. [4 points] Consider the Market for Money as given in chapter 7 when answering this question. Suppose the Real Money Demand function is given by L(Y,i) = 620 + 0.3Y 1000i; Output is given by Y = 1500, 1:20.07, and P=50; note that expected ination = 0 for simplicity. a. Calculate the real money demand. (show work). b. If the market for money is in equilibrium, what is real money supply equal to [give #]P Show work. c. Calculate the nominal money supply. (show work). d. Suppose that G rises so that the real interest rises to 0.1. What impact does thin have on the Price Level? Calculate and also state the impact on the Price Level (rise, fall, unchanged). Note: the solution for P is not a whole #