Help me solve the macroecon task below
1. (20 points) Following are some equations relevant to this problem C=atq( Y-T) G =G T = T 1 = 1-bi M = P( Y + [ - Lib L.I>0 M' = M (1) Define equilibrium in the goods market (ie. What is the equilibrium condition for the goods market?). Derive a formula that expresses equilibrium output in the goods market as a function of the exogenous parameters and of the nominal interest rate, i. (3 points) (2) In the diagram labeled "Goods Market", draw and label the 45 degree line and the total spending curve, indicate the slope and intercept of the total spending curve. Label equilibrium output. Provide algebraic formulas for the slope and for the intercept terms. (3 points)(3) Define equilibrium in the money (or financial) market (i.e. What is the equilibrium condition for the money market?). Derive a formula that expresses the equilibrium interest rate in the financial market, as a function of the exogenous parameters and of the level of output. (3 points) (4) In the diagram labeled "Money Market", draw the real money demand and real money supply curve, indicate the slope and intercept of the real money demand curve. Label equilibrium. Provide algebraic formulas for the slope and for the intercept terms. (3 points) (5) What is the situation in the goods market for (i,Y) combinations that lie above the IS curve. What is the situation for points below the /$ curve. Explain briefly. (4(6) What is the situation in the goods market for (i, Y) combinations that lie above the LM curve. What is the situation for points below the LM curve. Explain briefly (4 points) 2. (10 points) Consider a labor market in the medium run equilibrium. The production function is assumed to be }=N. Let z represent all other factors that affect the wage determination. Suppose that the equilibrium real wage increases from 0.75 to 0.8. This implies that the mark-up changes from to holding z constant. Use the medium-run labor market equilibrium diagram to demonstrate this. How will this affect the natural rate of unemployment and natural level of output