Numerical in the quiz:

Consider an economy that is described by the following equations:

C^d=140+0.8(Y-T)-200r

T=400+0.1Y

I^d=1000-700r

NX=50-0.07Y+0.15Y_For-100r+400r_For

L=0.5Y-1000i

R=67- .005Y+0.002Y_For+100r-300r_For

Y=5000;G=400;M=489,900; ^e=0.17; Y_For=4000; r_For=0.2; P_sr=213;

P_For=115 units of foreign currency per foreign good.

Find the equation for AD curve.

Find the short run equilibrium values of Y, P, r, T, C, I, NX and i.

Find the long run equilibrium values of Y, P, r, T, C, I, NX and i.

Find the values of real exchange rate R and nominal exchange rate e for the long run equilibrium.