Consider the Mundell-Fleming short-run model of a small open economy under floating exchange rates described by the following equations (1) through (7). Assume that there are free capital flows and that interest rate parity holds so that r = r* where r* = 5 is the world interest rate. (1) C = 400+0.8 (Y - T); (2) I = 850 -60r*; (3) G =1200; (4) T=1000 + 0.25Y; (5) NX = 600 - 200e ; (6) Y = C + I + G + NX; (7) (M/P )= 0.5Y -50r*. Equation (6) is the goods market equilibrium condition (IS* equation), while equation (7) is the LM* equation. The nominal money supply is M = 4000, the fixed domestic price level is P = 2 while the foreign price level is P*= 1. In equation (5), e is the nominal exchange rate. In this economy, the equilibrium output level Y* is equal to