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An economy is described by the following equations: C =15500+0.5(Y-T) - 50000r, I p=10000-20000r, G=8000, X= 1300, M=1800, T=T=8000, Y *=50000 a) Find a numerical

An economy is described by the following equations: C =15500+0.5(Y-T) - 50000r, I p=10000-20000r, G=8000, X= 1300, M=1800, T=T=8000, Y *=50000

a) Find a numerical equation relating planned aggregate expenditure to output and to the real interest rate (Given PAE=C+Ip+G+NX)

b) What the Reserve Bank should set the real interest rate to eliminate output gap if any? (

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