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The following equations describe the econom},r in Country A in 2019. Consumption C = 1000 + 0.6Yd 4001' Investment I = 250 500r Government spending

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The following equations describe the econom},r in Country A in 2019. Consumption C = 1000 + 0.6Yd 4001' Investment I = 250 500r Government spending G = 500 Exports X = 1500 Imports M = 500 + 0.4V Income tax rate t= 0.2 Money demand Md = 1000 250i Money supply Ms = 985 Expected ination rate ate = 0.05 where Yd is disposable income, i is nominal interest rate, and r is the real interest rate. c. What is the equilibrium output in Country A in 2019? Explain your calculations. (T marks)

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