Consider Chapter 6 model. The money growth rate is a random variable. Let the probability be 4/5 that a: 1 and the probability be 1/5 that g: 2. The realized value of ais kept secret until all purchases have occurred that is, people do not learn Mt until period t is over. Prices are only thing directly observable by the young. Let 1(1):) = 5 + 0.212% a. Solve for the equilibrium price level in each of the islands. (4+4 = 8 marks). b. What does the price level tell the worker about the money supply change? (2 marks)