just the impact of a rise in G please

3. [8 points] Consider the following economy: C=1500+0.5(YT)-100r 1: ?50-1 50r T=200 G=600 L=U.5Y250r M\": 5000 =2 Government Budget = T G. (Expected ination = U) mm a) Solve for the IS curve and the LM curve. b) Solve for the equilibrium values of r and Y. [hint Y is a whole number; note: do not multiply the solution of r by 100; simply plug the solution to r directly as is into the equations to solve for Y] c) Use the results from b) to solve for equilibrium C, I, and the Government Budget. d) Now suppose that the hill-potential level of output is equal to 5500 (Le? = 5500). Draw the IS LM diagram that correctly shows the IS, LM, and FE. line give the information you have calculated above (in part b) and given that the full-potential level of output is known to be 5500. Impact ofa rise in C. e) Now suppose that G increases to 850. What is the impact on the equilibrium r, Y, C, and I. Calculate. f) Discuss the impact of a rise in G on the eConorny, providing economic reasoning. No gure. g) Lastly, if the full-employment level of output ('7) = 5500, did the rise in G (from 600 to 850) bring the economy back to full-potential? Briey discuss