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7. (20 percent) An economy has full-employment output of 1000. Desired consumption and desired investment are Cid = 200 - 500r + 0.8(Y -T) I

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7. (20 percent) An economy has full-employment output of 1000. Desired consumption and desired investment are Cid = 200 - 500r + 0.8(Y -T) I = 200 -500r Government purchases are 196 and taxes are T = 20 + 0.25Y Money demand is Md P = 0.5Y -250(1+*) The nominal money supply, M, is 9100 and is not expected to change. What are the general equilibrium values of the real interest rate, price level, consumption, and investment

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