(Solved): Consider an economy with a constant nominal money supply, a constant level of real output \( Y=250 ...

Consider an economy with a constant nominal money supply, a constant level of real output \( Y=250 \), and a constant real interest rate \( r \) \( =20 \% \). Suppose that the income elasticity of money demand is \( 0.75 \) and the interest elasticity of money demand is \( -0.20 \). a. By what percentage does the equilibrium price level differ from its initial value if output increases to \( Y=275.00 \) (and r remains at 20\%)? \( \% \Delta P=\quad \) (enter your result as a percentage rounded to two decimal places).