Using the IS/LM model, AD/AS Goods Market: Money Market: C=225 + 1/2(Y-T) Money Supply=490 I=240-400r L(r,y)=(1/2)Y-100r G=125 Long-Term Inflation: 2% T=100 Natural Rate of Unemployment: 5% a. What are the IS and LM equations? b. Calculate and show the equilibrium output and interest rates? c. Considering a Keynesian Model, show graphically what happens to P, Y, and r in the SR when the there is an increased risk of the stock market changing the Money Demand by 25 regardless of Y or r. d. What is the short run Y and r? e. Suppose that the Fed would like to stabilize the economy. Show how large of a policy they would conduct. f. Compare the magnitudes of the Governments policies if they use only a change in expenditure, only a change in taxes, or only a balanced budget policy.