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IS, The economy has an aggregate production function f(N) = 15N Nz, where N is labor input. Labor supply is given by N = I Where W is the money wage and P is the price level. Desired consumption depends on real income, Y, and can be written as Cd (Y) = 10 + 0. 71'. Given real interest rate, r, the desired investment is I\" (r) = 30 2001'. The real money demand is characterized by L(Y, r) = 10 + Y 2001'. Government spending, G, and nominal money stock, M, is given as G = 0 and M = 200. 1.Suppose that money supply doubles to 400. Discuss how the equilibrium values of output, consumption, investment, the real interest rate, and the price level will change. Is money neutral in this model? 2. Describe the changes in equilibrium values in part (1) using the ISLMFE diagram. 3.Describe the changes in equilibrium values in part (1) using the ASAS diagram