12. Consider the following AS/AD model of a closed economy: us Property of FIU Econom .Yd = C+1 +G aparty of Pill Economies Property of Flu Econom C = 250 + 0.75(Y -T) . Y = yd 1 = 1400-10,000r nomics Property of BU Feonon MS /P = Md /P Md /P = 0.50Y -5000(r+) me Property of FILI Econon Y = YER YER = 2560 hits Property of PIU Economies Property of FIL Econor G = 400; T = 600 . MS = 2000; me =0poll.Economics Property of FIN Econor a. Use the first 6 equations to find the AD function for this economy (Y" expressed as a function of P). b. Graph the AD curve for prices between 1 and 10. Be sure to include the coordinates for at least 3 points on the curve. c. Calculate the long run equilibrium values of Y, r, and P for this economy. d. What would the post-shock short run equilibrium values of Y and r be for this economy, if taxes increased by 100 (from 600 to 700)? Hint: Assume that the price level is at its initial long run equilibrium value (from part c) at the time of the shock. rogerty of Fit e. If taxes increased by 100 (from 600 to 700), what would the post-shock long run equilibrium values of P and r be for this economy? F Economics Property of Flu Econ