Question 1 (5 marks) An economy is described by the following equation Cd-14400+0.5(Y-T)-40000r, IP-8000-20000r, G-7800, NX-1800, T-8000 a) Find the numerical equation relating planned aggregate expenditure (PAE) to output (Y) and to real interest rate (r). b) The real interest rate is 0.133, find short-run equilibrium output. (2 marks) (1 marks) c) Potential output, y*, equals 40,000. What real interest rate should be Reserve Bank set to bring the economy to full employment? (2 marks)