Lilliput, Blefuscu, Glubbdubdrib, and Brobdingnag are four (initially) identical economies. They are all closed to international transactions. In each, the real quantity of output per year,Y= 1000.

Households in all four economies choose their annual real consumption expenditure,C, according to the consumption function:C= 93 + 0.7(Y - T), whereYis current real national income, andTis total real tax revenue collected by the government (which is lump-sum and does not depend onY).

New real physical capital investment expenditure each year,I= 100 + 0.1Y- 10r, whereris the real interest rate.

Each government has real spendingG= 190 and collects real tax revenueT= 190.

Blefuscu also experiences an outbreak of the pandemic, but its private sector reacts differently. The consumption function in Blefuscu is unchanged atC= 93 + 0.7(Y - T). Government spending and taxation are also unchanged atG=T= 190. However, entrepreneurs' animal spirits are dampened as they foresee that future demand for their goods will be low, and their investment demand declines toI= 70 + 0.1Y- 10r.

Calculate equilibrium real consumption,C, in Blefuscu after the pandemic breaks out, given this new investment demand.