\fe) What will be the new equilibrium price level and real GDP in Everton? Price level: Real GDP: $ billion Starting from the initial equilibrium, suppose instead that the central bank of Everton is concerned about the low ination rate and wishes to increases the price level to125. The money market in the country of Everton is depicted in the graphs below [all figures are in billions of dollars). a) Suppose that the central bank of Everton wishes to implement a contractionary monetary policy and decreases the money supply by $50 billion. Draw the new money supply curve in the graph below. Plot only the endpoints of M52 line in the graph below. 6) 10 Tools 9 M81 / 3 M32 A 7 @3, w 6 E Z 5 0'! OJ 9:: 4 E 3 2 MD 1 0 Q 50 100 150 200 250 300 Quantity of money \fb) What is the new equilibrium interest rate in Evelton? 96 c) By how much will investment spending in Evelton change as a result of the decrease in the moneyr supply? (Click to select) v of 33 billion d) Suppose that for every $1 Change in investment spending, aggregate demand Changes by $4. Draw the new AD curve. Plot only the endpoints of the A02 curve in the graph below