Suppose that the aggregate expenditure curve for an economy can be expressed algebraically as AE = 3,000 2,000r, where AE is aggregate expenditures and r is the real interest rate expressed as a decimal. If the level of potential output in this economy is 2,825, what is the long-run real interest rate?

Instructions: Enter your response as a percent rounded to one decimal place.

The long-run real interest rate: ____ %