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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) I^d=200+500r Government purchases are 196 and taxes are T=20+0.25Y Money demand

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

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

I^d=200+500r

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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