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Suppose the monetary policy curve is given by r = 1 . 5 + 0 . 7 5 , and the IS curve is given

Suppose the monetary policy curve is given by r=1.5+0.75, and the IS curve is given by Y=13-r.
a. Calculate an expression for the aggregate demand curve.
b. Calculate the real interest rate and aggregate output when the inflation rate is 2%,3%, and 4%.
c. Draw graphs of the IS, MP, and AD curves, labeling the points from part (b) on the appropriate graphs.
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