The economy has flexible prices and can be described by the AD-AS model. Suppose you are given the following information: Planned aggregate expenditure: AEPlanned = 150 - 4P 0.6Y Aggregate supply (AS): P = (- 22.5 0.2Y) (w/20), where W = wage rate Question 12 If the initial equilibrium wage is 20, final the equilibrium levels of output and price. Be sure to show your work and keep your answer to 2 decimal places if necessary. Question 13 - Question 15 The economy is initially in its long-run equilibrium as shown in Question 12. Suppose there is a reduction in housing price such that household wealth falls and autonomous expenditure changes by 15. (Hint: You need to determine whether autonomous expenditure rises or fall) Question 13 When the economy reaches its short-run equilibrium, what is the change in the equilibrium level of price? Keep your answer to 2 decimal places if necessary and be sure to show your work. Question 14 Based on your answer in Question 13, which kind of output, inflationary or recessionary, gap the economy experienced? What is the size of the output gap (keep you answer to 2 decimal places if necessary)? Question 15 Comparing to