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Assume that an economy is characterized by the following equations: C = 100 + (2/3)(Y - T); T = 600; G = 500; I = 800 - (50/3)r; Ms/P = Md/P = 0

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Assume that an economy is characterized by the following equations: C = 100 + (2/3)(Y - T); T = 600; G = 500; I = 800 - (50/3)r; Ms/P = Md/P = 0.5Y - 50r. (a.) Write the numerical IS curve for the economy, expressing Y as a numerical function of G, T, and r. (b.) Write the numerical LM curve for this economy, expressing r as a function of Y and M/P. (c.) Solve for the equilibrium values of Y and r, assuming P = 1.0 and M = 1,200. How do they change when P = 2.0? Check by computing C, I, and G. (d.) Write the numerical aggregate demand curve for this economy, expressing Y as a function of G, T, and M/P.