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(21 points) Consider the economy of Hieksonia. a. g. (3 points) The consumption function is given by C = 200 +0.75(Y -T) The investment function is I = 200 25r. Government purchases and taxes are both 100. For this economy, derive the IS curve. (3 points) The money demand function in Hieksonia is (M/P)d = Y 1001-. The money supply M is 1,000 and the price level P is 2. For this economy, derive the LM curve. (3 points) Find the equilibrium interest rate r and the equilibrium level of income Y. (3 points) Suppose that government purchases are raised from 100 to 150. How much dew the IS curve shift? What are the new equilibrium interest rate and level of income? (3 points) Suppose instead that the money supply is raised from 1,000 to 1,200. How much does the LM curve shift? What are the new equilibrium interest rate and level of income? (3 points) With the initial values for monetary and scal policy, suppose that the price level rises from 2 to 4. What happens? What are the new equilibrium interest rate and level of income? (3 points) Derive an equation for the aggregate demand curve