Hi Pinky.. :)

14) Cost function would be

C= 5q for q<= 2

= 10+3(q-2) for q>2

Now, find the profits at q=3/2 and 5/2, you'll get the same profits.

17) Nominal interest rate = real interest rate + expected inflation

Now, if expected inflation increases, real rate of interest has to decrease to maintain the same level of nominal interest rate.

Hence, the LM curve will shift down ( if plotting in (Y,r) space) implying an increase in equilibrium level of output and a reduction in real interest rate.

:)