Assignment file Part I: Initial Conditions Suppose the following system of equations and parameters characterize the economy: Y^S=40 N 0.2 N^ 2 Production Function N^S = -3 +1.5 w/p Labor Supply Function I= 100-3-r Investment Function S = -25+0.1 Y+2.r Saving Function G=70 T 50 M=130 V = 5 1. Derive the labor demand function: N^d=f(W/P). 2. Calculate the endogenous real variables (W/P, N, Y, r, I, S, and C) and these endogenous nominal variables: P, W, and PY. Need to provide the typed solutions in step by step manner

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