An economy has full-employment output of 1100. Desired consumption and desired investment are: co = 300 + 0.90(Y-T)-400r 10 = 300 - 200r. Taxes are given to be: T = 25 +0.20Y. Money demand is: = 0.40Y-250(r+ Rº), where the expected rate of inflation, t = 0.10. The nominal supply of money M = 9,890. Using the goods market equilibrium condition, determine the equation for the IS curve for any level of government purchases, G, that gives the market clearing output, Y, given the real interest rate, r, and G. (The IS equation will be a relationship involving Y, r, and G. Enter your response rounded to one decimal place.) Y = - + G. (Enter your responses rounded to one decimal place.) Suppose initially the level of government purchases, G = 196. Using this level of G, determine the equation for the IS curve. (Enter your responses rounded to one decimal place.) Y=0-0 Given the full employment level of output to be 1100, determine the general equilibrium values of the real interest rate, consumption, investment and price level. Real interest rate = %. (Enter your response rounded to one decimal place.) Consumption = |(Enter your response rounded to one decimal place.) Investment (Enter your response rounded to one decimal place.) Enter your answer in each of the answer boxes. Suppose the level of government purchases increases to G = 216. Using this level of G, determine the equation for the /S curve. (Enter your responses rounded to one decimal place) Y=0-0- Given the full employment level of output to be 1100, calculate the new general equilibrium values of the real interest rate, consumption, investment, and the price level. Compute the changes in these variables due to the increase in G. Be sure to put a negative sign if the variable decreases. New real interest rate = %. (Enter your response as a percentage rounded to one decimal place.) Change in real interest rate = percentage points. (Enter your response rounded to one decimal place.) New consumption (Enter your response rounded to one decimal place.) Change in consumption = |(Enter your response rounded to one decimal place.) New investment = (Enter your response rounded to one decimal place.) Change in investment = | (Enter your response rounded to one decimal place.) New price level = 1 (Enter your response as a percentage rounded to one decimal place.) Change in price level = (Enter your response as a percentage rounded to one decimal place.) Enter your answer in each of the answer boxes.