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Supply Y = F(K,L) = 2K1/3L2/3 K = 125 L= 64 Demand C = 10 + .9(Y-T) I = 12-2r G = 5 T= 10

Supply Y = F(K,L) = 2K1/3L2/3 K = 125 L= 64 Demand C = 10 + .9(Y-T) I = 12-2r G = 5 T= 10 a.) What is the level of GDP in the economy? How much of national income goes to workers and how much goes to the owners of capital? b.) Find the interest rate that produces equilibrium in the goods and services market. c.) Show that the interest rate from part b also clears the market for loanable funds

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