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Consider an economy described by the following equations: Y = C + I + G Yf = 73000 C = 2800 + 0.8 (Y -

Consider an economy described by the following equations:

Y = C + I + G

Yf = 73000

C = 2800 + 0.8 (Y - T)

I = 4200

G =8000

T = 1200

a) Calculate the short-run equilibrium output and the output gap.

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