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An economy is described by the following equations: CxPGNXT=2,600+0.8(YT)10,000r=2,000=10,000r=1,800=100=3,250 The real interest rate, expressed as a decimal, is 0.10 (that is, 10 percent). a. Find

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An economy is described by the following equations: CxPGNXT=2,600+0.8(YT)10,000r=2,000=10,000r=1,800=100=3,250 The real interest rate, expressed as a decimal, is 0.10 (that is, 10 percent). a. Find a numerical equation relating planned aggregate expenditure to output. Instructions: Enter your response for mpc rounded to one decimal place. PAE=+Y b. Using a table (or algebra if you have used the appendix to this chapter), solve for short-run equilibrium output. Instructions: If you are entering any negative numbers be sure to include a negative sign ( ) in front of those numbers, Leave no cells blank. You must enter 'zero' for the answer to grade correctly. Short-run equilibrium output

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