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The IS and LM curve for the economy have the following equations: Y = k (Ap - 200 i) Y = 5 (Ms/P) + 500
The IS and LM curve for the economy have the following equations:
Y = k (Ap - 200 i)
Y = 5 (Ms/P) + 500 i
Where k -= 2.5,Ap = 5,200, Ms = 1.800.Given price levels, calculate equilibrium interest rate and real GDP at each level of price.
Price Equilibrium Interest Rate Equilibrium Real GDP
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Suppose that Natural Real GDP equals 11,000.Determine long run equilibrium real output, interest rate, and price level.
Please show all work.
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