Please put explanation on how you got the result

Exercise 5 Consider an economy described by the IS-LM model: " = C+c(Y -T) I = I-br G = G T = T (M/P) = Itk-Y - mi (M/P) = M/P Y is aggregate production, C is private consumption, I is planned private investment, G is government purchases, T is taxes, (M/P)dis real money demand, (M/P) is real money supply, M is nominal money supply, and P is the aggregate price level. r and i are the real and nominal interest rate. C, / and L are autonomous consumption, autonomous investment and autonomous real money demand, respectively. c, b, k and m are parameters, with 0 0, k > 0 and m > 0. C, I, L, G, T, M, P, c, b, k and m are exogenous. Assume for all your @2023 Koen Vermeylen Page 3 of 5 Extra assignment computations that the goods and money markets are in equilibrium. Assume also that there is no inflation, such that the real and nominal interest rates are equal to each other: r = i. Assume the following functional forms and parameter values: G = 100, T = 120, M = 720, P = 1 C = 20 + (Y - T) I = 140 - 10r (M/P) = 360 + 2Y - 60i Compute the equilibrium values of the following variables: 1. aggregate production Y. 2. the interest rate i. Now assume that government purchases G and taxes T both change with AG = AT = -60 (such that government purchases G become equal to 40, and taxes T' become equal to 60). Compute the new equilibrium values of aggregate production Y and the interest rate i, assuming that the Central Bank keeps the nominal money supply constant: 3. aggregate production Y. 4. the interest rate i. Compute the new equilibrium value of aggregate production Y', assuming that the Central Bank keeps the interest rate constant at the level which you found in question 2, and compute the nominal money supply M which is required to achieve this. 5. aggregate production Y. 6. the nominal money supply M. Compute the new equilibrium value of the interest rate i, assuming that the Central Bank keeps aggregate production constant at the level which you found in question 1, and compute the nominal money supply M which is required to achieve this. 7. the interest rate i. 8. the nominal money supply M