le Ic=3 mpe0.9 le=0.3 15 G= 2 Id = 0.4 T= 2 x = 0.1 NX = 1.81 = 0 (a) Using the data in the table above, write down the equation for the IS curve. Then, given that the monetary policy curve is r= 5+1.57, write down the equation for aggregate demand, AD. (b) Assuming that the Phillips curve is and the Okun's law is , write down the equation for the short-run aggregate supply, SRAS. Assume that inflation was 1.25% in the previous period and potential output, is 5. (c) Plot the AD and the SRAS curves that you found in parts (a) and (b) on the same graph. Calculate the short-run equilibrium level of output, , and inflation, Show them on your graph (d) Is the economy in the long-run equilibrium right now? Why or why not? What kind of a business cycle (if any) is it in? If it's not in the long-run equilibrium, explain and show on your graph how the economy will adjust to it? What will the LR inflation rate, be? le Ic=3 mpe0.9 le=0.3 15 G= 2 Id = 0.4 T= 2 x = 0.1 NX = 1.81 = 0 (a) Using the data in the table above, write down the equation for the IS curve. Then, given that the monetary policy curve is r= 5+1.57, write down the equation for aggregate demand, AD. (b) Assuming that the Phillips curve is and the Okun's law is , write down the equation for the short-run aggregate supply, SRAS. Assume that inflation was 1.25% in the previous period and potential output, is 5. (c) Plot the AD and the SRAS curves that you found in parts (a) and (b) on the same graph. Calculate the short-run equilibrium level of output, , and inflation, Show them on your graph (d) Is the economy in the long-run equilibrium right now? Why or why not? What kind of a business cycle (if any) is it in? If it's not in the long-run equilibrium, explain and show on your graph how the economy will adjust to it? What will the LR inflation rate, be