Consider the following Keynesian economy:

Desired consumption Cd= 200 + 0.6(Y - T) - 200r.

Desired investment Id= 300 - 300r.

Taxes T = 20 + 0.2Y.

Government purchases G = 152.

Net exports NX = 150 - 0.08Y - 500r.

Money demand L = 0.5Y - 200r.

Money supply M = 924.

Full-employment output Y = 1000

a)What are the general equilibrium (that is, long-run) values of output, the real interest

rate, consumption, investment, net exports, and the price level?

b)starting from full government employment, government purchases are increased by 62. what are the effects of this change on output, real interest rate, consumption, investment, net exports, price level in short run

c) with government purchases at their initial level, net exports increases by 6.2. compare your answer to that of part b.

d) derive the equation of IS Curve for this economy

e) derive the LM curve for this economy

f) find the real interest rate and output level for general equilibrium for this economy

g) derive the aggregate demand curve for this economy