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Consider the following behavioural relations for the closed 'economy 2' where in the short run, the price level is fixed: C=Co+Cl(YTt-Y) where T represents lump sum taxation and t represents the mean proportional taxation rate in economy Z. Exogenous government spending is given as: The aggregate investment schedule is given as: I=11'T+ID Money market equilibrium is equal to: m-Md-h +kY P P_ T The following values for the parameters and exogenous variables of economy 2 are given as: 60:130 C1=0.8 10:150 5:4 6:175 T=1 t=0.1 Keno k=0.1 h=10 . Derive the General Equilibrium simultaneous equation for economy Z. Further comment on the economic interpretations of this simultaneous General Equilibrium equation with reference to both the goods market and money market. (5 marks) . Calculate the equilibrium values of output (Ya) and interest rate (r). (5 marks) . Derive the fiscal multiplier (K), lump-sum taxation multiplier (KT) and the monetary policy multiplier (KM) for economy Z. Calculate their sizes and discuss the relative effectiveness of monetary policy over scal policy with reference to all parameter strengths in economy Z. (10 marks) . Why could the monetary transmission effects of scal policy nullify or counteract the impact of expansionary scal policy on real output? How can this transmission affect be offset or removed with reference to economy Z? (5 marks) e. Suppose the full employment level of output (YF) is 2100. Using your previous answers, calculate the required fiscal policy stimulus to close the output gap if the independent central bank has agreed to increase the real money supply by 45. Account for the changes in the equilibrium interest rate after the economic interventions