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Consider the following IS-LM model: C = 218+0.46YD T= 264 / = 158 +0.21Y - 1,132/ i= 0.04 G = 330 MIP = 2.1Y -8,090/

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Consider the following IS-LM model: C = 218+0.46YD T= 264 / = 158 +0.21Y - 1,132/ i= 0.04 G = 330 MIP = 2.1Y -8,090/ The /S equation is determined to be Y = 1771.39 -3430.30/. The LM equation is given as / = 0.04 Initial equilibrium values of Y, C, /, and the real money supply are calculated as Y = 1,634 C = 848 / = 456 M/P = 3,108 Now suppose that the central bank cuts the interest rate to 2%. In a graph of the /S-LM model, this causes the LM curve to shift downward . Following the change in the interest rate to 2%, the value of equilibrium real output becomes . (Round your response to the nearest integer.)

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