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QUESTION 1 COVID-19 and Monetary Policy in the IS-LM Model. Consider the following model of the goods market in a closed economy, where's measures the

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QUESTION 1 COVID-19 and Monetary Policy in the IS-LM Model. Consider the following model of the goods market in a closed economy, where's measures the extent of the spread of Covid- 19 within the count Z = C+I+G (1) Planned aggregate expenditure C = 5+ (0.8 - s) YD (2) Consumption function (3) 1=2 - s+0.2Y - 1001 Planned investment (4) G-2+5 Government expenditure YO = Y - T (5) Disposable income (6) T - O.ZY Tax function Y = Z (7) Equilibrium Condition and money market: (8) Money demand L-5+ s + 0.125Y -200i (9) Money supply (10) Money market equilibrium Using the above model and rounding to 5 decimal places, solve for the equilibrium output Y * when: There is no covid-19, i.e. s = 0, and money supply = = 5

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