Microeconomics

Hello, Can someone help me to finish these two Economic questions?

Please write down the steps.

If possible, please finish the solution in an hour and a half

Question 1. General Equilibrium and Business Cycle [20 Marks] A classical economy is described by the following equations: Cd = 180 + 0.8(Y - T) -210r Id = 180 -90r L = 0.7Y - 180i Y = 1,800 IT = 0.05 Government spending and taxes are equal where T = G = 80. The nominal money supply M = 4,000. (a) What are the equilibrium values of the real interest rate, the price level, consumption, and investment? [10 marks] (b) Suppose an economic shock increases desired investment by 10, so it is now Id = 190 - 90r. How does this affect the equilibrium values of the real interest rate, the price level, consumption, and investment? [6 marks] (c) Does Classicals or Keynesians argued that prices and wages adjust slowly enough that the economy is kept away from long-run equilibrium for an extended period of time? Briefly explain. [4 marks]Question 2. Supply, Demand and Elasticity [le Marks] Suppose the demand curve for a product is given by QB = 4 115:? and supply curve or this product is given by (23 = [ILSP {a} what is the equilibrium price and quantity? [4 marks] (b) What is the price elasticity of supply at equilibrium? Is the price elasticity of supply elastic, inelastic or unit elastic? Explain your answer. [4 marks] (c) What is the price elasticity of demand at equilibrium? Is the price elasticity of demand elastic, inelastic or unit elastic? Explain your answer. [4 marks] (d) If a 15 percent increase in income leads to a 3 percent decrease in the demand for a good, the income elasticity of demand equals and the good is good. [4 marks] (e} If a 2 percent increase in the price of good X leads to a llllI percent increase in the demand for good Y, and other things remain the same, the cross elasticity of demand equals and goods X and Y substitutes or complements? [4 marks]