assignment questions for help

Consider the following model of a small open macroeconomy during a pandemic: Production and Labour Market: Y = 20N N72, (1) Production function Nd = 20 g, (2) Labour demand N3 = 4%, (3) Labour supply Nd = N3 = N, (4) Labour market equilibrium Goods Market: Z 2 0+ I + G + NX, (5) Planned aggregate expenditure 0 = 40 (0.5 mid) YD, (6) Consumption function I = 8 com'd + 1151' 2001', (7) Planned investment G = 30 20md, (8) Government expenditure YD = Y T, (9) Disposable income T = 10 + 0.25Y, (10) Tax function NX = 50 (151' + e, (11) Net Exports function Y = Z, (12) Equilibrium Condition Money Market: L = 10 + 20com'd + 0251' 1001', (13) Money demand %, (14) Money supply L = g, (15) Money market equilibrium Balance of Payments: i: if = 0.05. (16) BP=O locus In the above equations, conic! stands for the extent of the spread of the covid-19 pandemic in the population, which takes different values as specified below. In addition, Y stands for output, Y}; for disposable income, 2 planned expenditure, N labour, Nd labour demand, N, labour supply, W nominal wage, P price level. 0 consumption, I investment, NX net exports, G government expenditure, T net taxes, L real money demand, M nominal money supply, 3 nominal exchange rate, 2' nominal interest rate, and 1', foreign nominal interest rate. Assume that, in all cases, the short side of the market determines outcomes. Using the above model and rounding to 3 decimal places, answer the following questions: (a) Let cmn'd = 0. If the price level P and the nominal wage W are flexible, but the exchange rate is fixed ate = a = 0.5, what is the equilibrium value of Y'? (3 marks) (b) Let mid = D. If the exchange rate remains fixed at e = E = 0.5, but now the price level P is also fixed at P = T? = 1, what is the equilibrium value of Y'? (3 maiks) (G) Let cavid = 0. If the price level P remains fixed at P = ? = 1, but the exchange rate 6 is now flexible and the money supply is fixed at M = H + loom'd with H = 50, what is the equilibrium value of Y\"? (3 marks) (d) Let oovid = 0.25, and replace equation 3 (labour supply) with N, = 9%, due to a permanent decrease in labour disutility as a result of remote working. Calculate how your answers to the above subquestions (a), (b) and (0) change. (5 marks) (6) Explain briey the effect of oovid-19 and the implicit government response on this model economy. (1 mark)