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Please help answer the below: 2. Let us consider the following economy: C = 500 + 0.6YD YD E Y - T G =200 T

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2. Let us consider the following economy: C = 500 + 0.6YD YD E Y - T G =200 T = 100 I = 265 + 0.2Y- 50i 3. Using the equations and the numerical valua provided, write down the equation of the aggregate demand (22) schedule. (2 Points) b. Write down the equation of the IS relation and plot it. (4 Points) c. For an interest rate of 10% (i=0.1), compute the equilibrium level of output/income Y. (2 Points) d. For an interest rate of 10% (i=0.1), derive the level of government spending required to achieve an equilibrium output/income level of 5000. (2 Points)

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