2. Consider an economy described by the following: Co = $3.25 trillion Io = $1.3 trillion G = $3.5 trillion T = $3.0 trillion NXo = $ - 1.0 trillion f = 1, C1 = 0.75, d = 0.3, e = 0, x = 0.1, A = 1, i = 1, Te = 0 A. Derive expression for the LM (or MP) curve and the AD curve. B. Assume that 7 = 1. Calculate interest rate and output. C. Assume that 7 = 2. Calculate interest rate and output. D. Suppose the Bank of Canada increases i to i = 2. Assume that 7 = 1. Calculate interest rate and output. E. Assume that 7 = 2. Suppose government spending increases to $ 4 trillion. Calculate interest rate and output