6. An economy is described by the following equations: AD curve : M 4000 +0 (g) 17 + 100(P P6) Y SEAS curve : Y Y Okun's law : = 2(n ) Hg Full employment output is l7 = 6000 and the natural unemployment rate is '50 = 0.05. (a) Suppose that the nominal money supply has long been constant at M = 4000 and it is expected by the public to remain constant forever. This means we are in the longrun equilibrium. Find Equilibrium value of the price level P: The expected price level PE: Expected ination 'JTB: Output Y: Unemployment rate a

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