1. Consider the following three equation macroeconomic model in log linear form: 1 . yt = mt - Pt ii. yt = 0.5(Pt - 0.5Et-1Pt) mt = 1 + mt-1 + ut, Et-1 (ut) = 0. In the above model, yt is output, pt is price level, me is money supply and ut is a white noise shock. a. What are the endogenous and exogenous variables in this model? b. Derive the rational expectations solution for output and show how lagged money supply will affect output. I c. Derive the rational expectations solution for price and show how lagged money supply will affect output