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Could you please help me with that question? Assume the structure of the demand side of the economy can be summarized in the following equations:

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Could you please help me with that question?

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Assume the structure of the demand side of the economy can be summarized in the following equations: C = Ca + 0.75(Y - T); Ca = 200; T = 400; 1p = 1,650 - 50r; G = 450; and Ma = 0.25Y- 50r + 2000; MS = 500 The supply side can be summarized in the following equations: Production function: Y = 40N0.5 The nominal wage that workers demand will not be as flexible as in the neoclassical case. However, it will follow the change of P. The relationship between price P and real wage W can be written as W = 10p0.5 a) Derive the AD Curve. b) Derive the AS Curve. (c) Calculate the equilibrium Y and P in the AD-AS model. d) Suppose the FED increase My by 1500, calculate the new equilibrium Yand Pin the AD-AS model. e) Is the expansionary monetary in d) policy effective? Why? (Hint: IS-LM, AD-AS)

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