Consider the following version of the New Keynesian AS-AD model: Ct = c1(Yt Gt) c2(Yt 1 Gt 1) c3rt (1) It = b1(rt ft) b2At 1 b3Kt, (2) Mt = Pt m1(rt e t 1) m2Yt, (3) Pt = Pt ( Yt Y f t ) (4) Yt = AtK t N1 t (5) Nt = n1 n2wt n3t (6) The parameters c1, c2, and c3 are all positive, as are b1, b2, b3, and ; (0, 1); n1, n2, and n3 are positive. Government spending, Gt, is exogenous. a. The economy is competitive and all agents are price takers. Use equations (5) and (6) together with the firm's first-order condition with respect to Nt to solve for the flexible-price level of employment, for a given productivity At and capital stock Kt. (3 points) b. Using your answer from the previous question, characterize the flexible-price wage rate that clears the labor market. (1 point