Let the Production function be F=A (10N-0.05 N²). Where A=2 The labor supply curve is Ns= 65+10(1-t)w, where w is the real wage and t=0.5 is the tax rate. Let r be the real interest rate, the desired consumption and desired investment can be described by Cd=800+0.8(Y-T)-l00r and Id = 800-100r, respectively. Government tax is T=20+0.5 Y and government purchase is G=91. Really money demand function is L=0.5Y-250i. Where i is the nominal interest rate. Assume nominal money supply is fixed at 41175 and the expected inflation rate pie e = 1%. (a) Calculate the general equilibrium level of real wage, employment and output.
b) Find the equation that describes the IS curve.
(c) Calculate the real interest rate, consumption and investment in the general equilibrium.
(d) Find the equation that describes the LM curve.
(e) Calculate the price level in the general equilibrium.
(f) Find the equation that describes the AD curve.
Bonus Find the equation that describes the FE curve.