Consider an economy that is described by the following equations:

Desired consumption is Cd = 2000 + 0.9Y - 100,000r - G,

Desired investment is Id = 1000 - 45,000r.

Real money demand is Md/P = Y - 6000i.

Other variables are e = 0.03, G = 500, = 1000, and M = 2100.

Where is e expected inflation rate, G is government expenditure and M is Money Supply. In the short run, the price level is fixed at P_sr.

_a) Find the equation for the IS curve by using the goods market equilibrium condition.

b) Find the equation for the LM curve by using the asset market equilibrium condition.

c) Find the short-run equilibrium

d) Find all the long-run equilibrium values.