Problem 5 (10 points). Consider the economy of Problem 4: Y = C+I+G, C = 200 + 0.5 . (Y - T), I = 300 - 50r, M P = 0.5Y - 50 . (r + Ex) T = 200, G = 200. M = 1000, ET = 0. Suppose, in addition, that P = 2.5 and that the output is at its long-run level. Next, suppose that a spread of COVID-19 and the resulting lockdown reduces overall consumption, such that the new consumption function is C = 100 + 0.5 . (Y - T), (a) What are the new equilibrium output, consumption, investment, real interest rate, and price level in the short run? (b) What are the new equilibrium output, consumption, investment, real interest rate, and price level in the long run? (c) What is the required stimulus check to households (reduction in taxes ?) to bring the short-run output back to its long-run level? What are the effects of this fiscal policy on consumption, investment, and the real interest rate? Assume that no other policy is in place. (d) What is the required change in the money supply M to bring the short-run output back to its long-run level? What are the effects of this monetary policy on consumption, investment, and the real interest rate? Assume that no other policy is in place