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An economy has full-employment output of 1,100. Desired consumption and desired investment are: cd = 200 + 0.80(Y T)-600r Id = 200 600r. Government purchases
An economy has full-employment output of 1,100. Desired consumption and desired investment are: cd = 200 + 0.80(Y T)-600r Id = 200 600r. Government purchases and taxes are given to be: G = 220 and T: 20 + 0.20Y Money demand is: Md ? = 0.25Y-200(r+ \"9), where the expected rate of ination, Ire = 0.10. The nominal supply of money M = 10,100. Using the goods market equilibrium condition, determine the equation for the IS curve that gives the market clearing output, Y, given the real interest rate, r. (Enter your responses rounded to the nearest whole number.) Y: r
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