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Econ question 1 Question 1 (/4 points) An economy has full-employment output of 1000. Desired consumption and desired investment are Cd=200 + 0.8(Y - T)

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Econ question 1

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Question 1 (/4 points) An economy has full-employment output of 1000. Desired consumption and desired investment are Cd=200 + 0.8(Y - T) - 500r Id = 200 - 500r Government purchases are 196 and taxes T = 20+ 0.25Y Money demand is: M /P =0.5Y -250(rtie), Where the expected rate of inflation n = 0.10. The nominal supply of money M = 9890. What are the general equilibrium values of the real interest rate, price level, consumption, and investment

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