Consider the following extended classical economy (in which the misperceptions theory holds): AD Y=300+10(M/P) SRAS Y=Y+P-pe Full-employment output Y = 500 Natural unemployment rate u=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 and the price level P? What are the long-run equilibrium values of these two 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 and the price level P? What are the new long-run equilibrium values of these two variables? In gen- eral, are your results consistent with an expecta- tions-augmented Phillips curve?