1. Consider a simple Keynesian income-spending model of an economy described by the following equations 03} (G) C = 250 + D.'?5Yd TF2 =2oo 'I_'= 0.1v L: 250 Q=600 X =350 M=0.15Y Calculate the equilibrium income level. Sketch this equilibrium position using a two-dimensional graph. If potential GDP is 3,579 what is the size of the output gap? If public sector spending on goods and services is increased by 50, what is the new equilibrium level of income? How much should public spending have been increased by in order to have closed the output gap? [All calculations to one decimal point. You must report your calculations] Consider an ISHLM model of an economy with the following equations: (a) {b} (0) (d) C=300+D.6Yd I_=1005i G=200 T=200 T=O.lY L_=g.4Y30i MIP =500 Using the above data, derive the equation for the IS schedule. In this examme, what is the equation for the LM schedule? Calculate the equilibrium level of income and interest rates. Sketch the ISlevI equilibrium position. What are the values of the monetary policy multipliers with respect to income and interest rates? If the money supply is increased by 30, what are the new market- clearing income and interest rate levels? [All calculations to two decimal points. You must report your calculations]