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O laecon1.lyryx.com C + Question 3 [6 points] Suppose the central bank's monetary policy sets the interest rate according to the function: i = 5 + 2(TT - TT ) with 1 = 5, and aggregate expenditure is: AE = 66 + 0.4Y - 6i a) What is the equation for the ADT curve? Use 'PI' to represent ir when entering your equation. Y = b) Plot the ADT curve in the graph below. Aggregate Demand 7.5- Inflation Rate (%) 4.5- 1.5- 0 25 50 75 100 125 150 175 200 Reset Real GDP Official Time: 12:38:54 SUBMIT AND MARK SAVE AND CLOSE

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