Consider the following extendedclassical economy (in which the misperceptions theory

Consider the following extendedclassical economy (in which the misperceptions theory holds): ady=300+10(m/p). srasy=y+p−pe. okun's law(y-y )/y=−2(u-u). full-employment outputy=500. natural unemployment rateu=0.06. a.suppose that the money supply m = 1000 and that the expected price level pe =50. what are the short-run equilibrium values of output, y,the price level, p,and the unemployment rate, u? what are the long-run equilibrium values of these three variables? b.now suppose that an unanticipated increase raises the nominal money supply to m = 1260. what are the new short-run equilibrium values of output, y,the pricelevel, p,and the unemployment rate, u? what are the new long-run equilibrium values of these three variables? in general, are your results consistent with an expectations-augmented phillips curve?