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Consider the economy of HansenLand: C = 50 + 0.75(Y - T) 1 = 50 - 5r T = 50 Ms = 470 Md G

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Consider the economy of HansenLand: C = 50 + 0.75(Y - T) 1 = 50 - 5r T = 50 Ms = 470 Md G = 100 P = 2.5 P = L(r, Y) = 0.4Y - 4r Using your knowledge of the IS-LM model, calculate the equilibrium real output and interest rate. [Note: the real interest rate should be expressed as a "whole" number.] (7)

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