(20 points) The government of Happyland has budgeted an expenditure of 150 million Happydollars (their local currency). The information below describes the macroeconomic situation of Happyland: C = 100+ 0.8*Yd. T = 20 - 0.125*Y; [ = 666 - 30*r;(M/P)d = 4*Y-80*r, and MS/P = 6'000 with P=1. where variables (Yd, Y, T, C, I) are expressed in million Happydollars and r is the interest rate expressed in percentage points (i.e. you don't need to change basis and should interpret r = 10 as a 10% interest rate). Note that Yd (disposable income) is not the same as Y (income). Given the previous information for the goods and services market and the money market, you are requested to answer the questions below. a. (5 points) The information above says that T varies with Y and therefore, you need to consider its whole expression while using the disposable income. Find an expression of C that only depends on Y and recognize what is the value for MPC in this model (with ad valorem taxes}. b. (5 points) Obtain the equation for the IS curve describing the equilibrium of the market of goods. Remember that the information above says that T varies with Y and therefore, you need to consider the whole expression while working out your IS curve. c. (5 points) Obtain the equation for the LM curve describing the equilibrium of the money market. d. (5 points) Estimate the slopes ofthe IS and LM in the outputinterest rate space