Md= P (m0 + m1Y m2 i), where Mdis nominal money demand; P is the price level; m0 (apositive constant) represents exogenous changes to Md; and m1 and m2 are also positiveconstants Let Ms represent nominal money supply(a) Derive the IS relation and the LM relation equations.(b) Now suppose 1/[1-c1(1-t)]= for simplicity. Derive the expression for aggregate demandusing your answer to part (a). (Hint: To derive the AD curve, just substitute in for i into theIS equation from the LM equation. You will obtain an equation of Y as a function of P. Inthe right-hand-side of AD equation, you still keep those parameters, such as , Ms, etc. )