Suppose that we begin with an economy with a price level of 1DD {p = 100]. At this price level, the functions for C, I, G, and NH are given bv: c = 0,000 + 0.0(1 tjd' I = 2.000 s = 4,000 NX = 2,000 0.121r Assume that the tax rate {t} begins at 10%. 1. Write down an expression for the AEF. What is the equilibrium Desired National Income W} at p = 100? [2 points] Now suppose that both X and C respond to the price level. Specifically, for everv 10 increase in p, Autonomous Desired C decreases by 600 and Autonomous Desired Exports decreases by 200. 2. Suppose that the price level increases to p = 140. What is the new equilibrium Desired National Income [V] at p = 140? [2 points] This relationship between p and the demand for Y is enough to derive an Aggregate Demand (AD) curve. 3. Use your answer from [11 and 012 to write down the Aggregate Demand Curve in this case, with Demand for GDP {'1'} as a function of the price level {p}. [4 points] 4. Plot this Demand Curve with GDP (Y) on the x-axis and the price level (p) on the y-axis. Label both the x-intercept and y-intercept for the AD curve. What is the slope of this AD curve? [2 points]PRICE ( P ) 200 140 100 V X e 23000 25000 31250 Y INCOME