The answer should be typed.

Consider an economy described by the following: C, = $3.25 trillion /, = $1.3 trillion- ar (G) = $3.5 trillion - ar (7) = $3.0 trillion Nx, = $-1.0 trillion ar (f) = 1, C, = 0.75,d = 0.3,e = 0,x = 0.1,A = 14 ar (i) = 1,7 = 0A Derive expression for the LM (or MP) curve and the AD curve. B. Assume that /7 = 1. Calculate interest rate and output. C. Assume that /7 = 2. Calculate interest rate and output. D. Suppose the Bank of Canada increases /bar (i) to /bar (i) = 2. Assume that 7 = 1. Calculate interest rate and output. E. Assume that 7 = 2. Suppose government spending increases to $4 trillion. Calculate 1 interest rate and output. 2. Consider an economy described by the following: Co = $3.25 trillion Io = $1.3 trillion G = $3.5 trillion T = $3.0 trillion NXo = $ - 1.0 trillion f = 1, Ci = 0.75, d = 0.3, e = 0, x = 0.1, A = 1, 1 = 1, * = 0 A. Derive expression for the LM (or MP) curve and the AD curve. B. Assume that 7 = 1. Calculate interest rate and output. C. Assume that 7 = 2. Calculate interest rate and output. D. Suppose the Bank of Canada increases i to i = 2. Assume that # = 1. Calculate interest rate and output. E. Assume that * = 2. Suppose government spending increases to $ 4 trillion. Calculate interest rate and output