Solve clearly

Use the following general specification of the AD and AS curves: AD: IS Y = a - 2(R - F) where T = 0.02 MPR Rff - T = 2(7 - 7) where target inflation 7 = 0.02 Financial friction: R = Rff + f AS: TT = Te + Y Assume a = 0. Assume inflationary expectations are adaptive so that 7 = 71-1. Assume the economy is at an initial long-run equilibrium where Y = ( and , = 7. The economy experiences an financial shock so that f = 0.07 in both time period 1 and 2. What is the percent value of short-run output and inflation in time period 1? Select one or more: a. Short-run output is -1.40 D b. Short-run output is -2.80. c. Inflation is 4.80 V d. Short-run output is 2.80 X e. Inflation is -0.80 f. Inflation is 0.60