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Consider the following economy: Cd = 200 + 0.5Y -500r 1 = 200 -500r L = 0.5Y - 250(r + *) 720 G = 150

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Consider the following economy: Cd = 200 + 0.5Y -500r 1 = 200 -500r L = 0.5Y - 250(r + *") 720 G = 150 A = 4900 Y = 1000 Derive the equilibrium levels of real interest rates r, desired consumption C', desired investment I" and the price level P. L is money demand equation and M is money supply equation

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