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ECO - Suppose that the following equations describe an economy

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Question;Suppose that the following equations describe an economy. (C, I, G, T and Y are measured in billions of dollars, and r is measured as a percent, for example, r = 10 = 10%):C = 170 + 0.6 (Y ? T)T = 200I = 100 ? 4rG = 350(M/P)d = L = 0.75Y ? 6rMs/P = 735a. What is the equilibrium levels of real output ____________b.What is the equilibrium real interest rate

 

Paper#57586 | Written in 18-Jul-2015

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