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An economy has full-employment output of 1000. Desired consumption and desired investment are C^d = 200-500r + 0.8(Y-T) Government purchases are 196 and taxes are

An economy has full-employment output of 1000. Desired consumption and desired investment are

C^d = 200-500r + 0.8(Y-T)

Government purchases are 196 and taxes are

T=20+0.25Y

Money demand is

M^d / P = 0.5Y -250(r+^e)

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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