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Hi, I need help with these questions. Consider the AD-AS model of the economy where the expressions for AD and AS curves are, respectively, P

Hi, I need help with these questions.

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Consider the AD-AS model of the economy where the expressions for AD and AS curves are, respectively, P : GOO0.5Y P = P_1+0.5(YY*) where Y is real income, Y* is full-employment income, and P_1 is the price level in the previous period. The economy is originally in long-run equilibrium i.e, real income is equal to full employment income in period 0 and P_1 = 100. 1. What is the value of Y\" in this economy? What is the initial equilibrium value of P\"? 2. Suppose that in period 1 there is a permanent increase in aggregate demand, and the expression for AD becomes P : 800 0.5Y. What are the short-run equilibrium values of Y and P in period 1? 3. Explain what happens to the AS curve in period 2. What are the shortrun equilibrium values of Y and P in period 2? 4. Explain what happens to the AS curve in subsequent periods. What will be the new longrun equilibrium values of Y and P

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