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An economy has fullemployment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd: 3000 - 2000r + 0.10Y

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An economy has fullemployment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd: 3000 - 2000r + 0.10Y Id = 1000 - 4000r where Y is output and r is the expected real interest rate. 3. Find the real interest rate that clears the goods market at the fullemployment output

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