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2. Impacts of Stimulus Payments in the IS-LM. 26 points All three of Congress's COVID legislation bills have included stimulus payments. We will explore how

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2. Impacts of Stimulus Payments in the IS-LM. 26 points All three of Congress's COVID legislation bills have included stimulus payments. We will explore how these payments might operate differently than traditional government spending. Suppose the economy is well-represented by the following IS-LM model C(Y -T) = 50+0.8(Y -T) I(r) = 400 - 20r G -250 T = 200 L(r,Y) = Y -20r M = 4000 P-4 Also, assume prices are sticky in the short run. (a) Solve for the IS-LM equilibrium before any shock occurs. What is r, Y, C, and /? (5 points)

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